Retire and the 406 Dollar Soda
|
What are you talking about?" Well, that is a good point. Have you ever thought about the other cost of a Coke, meaning what that dollar could have become? The answer is: should you have invested that same dollar at age 18, that Coke cost $406 at age 70. This is not making great assumptions of hitting that one great big stock, the next Microsoft or Intel.
This is at the historical return of the S&P 500, approximately 12% per year. The point is further driven home in recent commercials on television. The commercial talks about a diamond necklace, and finally posing the question "Is there any other way to show you love for her?" Then a voice says, and I am paraphrasing, "Well, you could just tell her, and save the money for her retirement."
Think about that. Every one dollar you spend today costs you a small fortune when you are retired. I have worse news for you -- and here is the big secret about retirement -- retirement is when you need the money the most. I am sure most of you know elderly people who are saddled with medication costs that take up more than whatever Social Security and Medicare provide. Keep this image in mind, the next time you upgrade to a Super Size meal for just 39 cents. Those 15 extra fries just cost you $89.85 at age 65, about $6 per fry.
How can you make this money work for you? The first think you need to do is see a financial planner. Undoubtedly, there are many in your area. Set up an allotment into a Roth IRA, a certain amount each month that goes directly to whatever mutual fund you choose, and forget about it. Giving up $100 a month starting at age 25 will give you over $1,156,000 at age 65. If you can scrape $2000 a year or $166.66 a month, at age 65 you will have over $1,900,000. IF your IRA is a Roth, you will have this money tax-free. You can't do better than that.
Scrape and skimp, save and save. Pay yourself first, and keep the long-term goal in mind. You can make your own path for the future. Take the time to cut coupons. Decide what you spend money on but never use and get rid of it. For example, if you have cable but only watch local stations, get rid of cable and get some rabbit ears. It will save you $40 a month, or $462,000 at age 65.
Frugality and investment are the path to riches and a comfortable life. Make sure that you make the right choices to ensure you get there.
And no, after learning this, I don't drink Coke anymore.
Kenneth Bateman is a contributing editor of The Family Budgeteer Weekly Online and Newsletter which can be found at www.familybudgeteer.com
Try a local search of our site for your answers
HOME PAGE || About Us || Contact Us || Privacy Policy || Terms of Use || Entrepreneur Coaching || Business Entrepreneur Blog || Subscribe to Newsletter || Free Books & Business Manuals || Famous Quotes || Buy website business || Link Directory – add URL || Write your own eBook || Small business resources || Internet Business Resources || Business Resources || Business Entrepreneur resources || Affiliate Income Resources ||
|
Great Health, Wealth, Relationships and Overall Success! Become part of a group that has committed to a plan, a process, a blueprint and a commitment to inspect and improve their lives. The Jim Rohn One-Year Success Plan (including experts Jim Rohn, Zig Ziglar, Brian Tracy) will help you do just that and become the person you desire to become. Visit: www.jimrohn.com today! |
=================================================
DISCLAIMER: The self help resources on this site are not intended to be a substitute for professional advice. While all attempts have been made to verify information provided in this publication, neither the author nor the publisher assumes any responsibility for errors, omissions or contrary interpretation of the subject matter herein. There is no guarantee of validity of accuracy. Any perceived slight of specific people or organizations is unintentional. This website and its creators are not responsible for the content of any sites linked to.
The contents are solely the opinion of the author and should not be considered as a form of advice, direction and/or recommendation of any kind. If expert advice or counseling is needed, services of a competent professional should be sought. The author and the Publisher assume no responsibility or liability and specifically disclaim any warranty, express or implied for any products or services mentioned, or any techniques or practices described. The purchaser or reader of this publication assumes responsibility for the use of these materials and information. Neither the author nor the Publisher assumes any responsibility or liability whatsoever on the behalf of any purchaser or reader of these materials.
Go to small business entrepreneur resources home page for more small business entrepreneur and web site business articles, e-books and make your own web site resources for the small business owners, consulting services, business executives and business entrepreneurs. More make your own web site consultant and small business resources are being loaded every week, so bookmark this site to check later for more small business entrepreneur and web site business resources for make your own website.
=================================================
