For most people, the last thing they are thinking about in their 20s is retirement planning. In your 20s is when you typically settle on a definitive career path and land your first “real” job. Thinking about how to fund your retirement in 40 years is likely not at the top of your “to do” list. It should be though, right along with estate planning.
Unfortunately, the days of easy retirement planning went by the wayside many years ago. Pensions are rare these days and the future of the Social Security retirement system is questionable. As a consequence, most people are using various other tools to plan for retirement. If you are lucky enough to have an employer funded retirement plan, then you may only need to supplement that plan; however, starting early is still critical.
The cost of medical care, inflation and housing have steadily increased the projected costs of living comfortably during your golden years. The best way to be sure you won’t have to worry is to start planning as soon as you are able to do so. By maximizing your money now, you should be in a comfortable position when the time comes to retire. Along with started your retirement plan early, be sure to create an estate plan that works with your retirement plan in order to protect your loved ones in the event of your death. The more complex your retirement plan becomes, the more comprehensive your estate plan will need to be in order to account for the variety and complexity of your assets.