Its a good idea to start saving early for retirement.

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Its a good idea to start saving early for
retirement.

• Fidelity.com says, Starting today is the best
  way to help you reach your goals.
  
• AARP.org says, Use time to your advantage by
  starting early and saving regularly.
  

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When someone asked Albert Einstein what he
considered mankinds greatest invention, hes
said to have replied without hesitation,
"compound interest."
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For the beginning of my plan I chose to invest in
a mutual fund, because I am young and I can
invest with a higher level of risk. I picked a
mutual fund because of its high interest rate
earnings. Coupled with Compounding interest, I
believe I will make the most money using this
plan.
I chose the Fidelity Diversified International
Fund. Its Average Annual Total Return for life
is close to 10. For more information on this
fund visit http//personal400.fidelity.com/gen/mfl
fid/10/315910802.html
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Using Microsoft Excel, I calculated my investment
earnings until the age of 65, starting at ages
(click to see the separate spreadsheets)

• 18

Annual Investment 2000 Based on my mutual fund
Constant Interest Rate of 10

• 25

• 30

• 35

• 40

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And The Winner Is..
It pays to start investing at age 18.
2,112,379.14!
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Using Microsoft Excel, I calculated my annual
annuity withdrawal from the ages 66-85 using the
investment plans beginning from
(click to see the separate spreadsheets)

• 18 years

Annual withdrawal of 70,000 Based on a savings a
ccount interest rate of 2 http//bank.commerceonl
ine.com

• 25 years

• 30 years

• 35 years

• 40 years

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Based on my normal standard of living, i would
like to receive 70,000 annually from my annuity
account to live comfortably after retirement. In
order to do this, the graph shows that I would
have to start investing anytime from ages 18
through 24.
It pays to begin investing early!
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Average starting salary 35,000
Average ending salary 85,000 (inflation not fact
ored in) -data provided by the Bureau of Labor St
atistics
I would like to receive 70,000/year after
retirement, this is about 82 of my ending salary
as a civil engineer.
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Conclusion Time Means Money! This presentation h
as illustrated the benefits of investing early.
Social security will not be an adequate source of
income in the future. If you want to live
comfortably after retirement, without financial
worries, you better start investing soon!
E-Mail John Conover
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