You MUST Start Retirement Planning in Your 20's!

hi YouTube it's Jenny Lee here those of

you who know me in real life or even if

you just follow me on social media you

may know that I recently started a new

job now starting a new job could be

really really awesome and exciting but

it also has these really annoying parts

like going to new hire paperwork and

doing all the HR stuff that you have to

do I just want to stress in this video

that it is so important that you

actually redo all of those detailed

documents especially when it comes to

your benefits like your your retirement

plan when I was a senior in college I

read a book called women and money by

Suze Orman now I definitely recommend

that you read this book even if you're

not a woman because even though like

Suzy's tone and her language is geared

toward women because that's her audience

obviously and that's who she can relate

to but she has a lot of important

information just ranging from like the

difference between a checking's in a

savings account to why it's so important

for you to have an emergency fund to

retirement plan investing and also

credit card information and why your

credit score is so important so needless

to say this book is really awesome for

personal finance for anyone the largest

misconception that people have about

retirement investing is that you you

need a lot of money if you want to make

a lot of money and that's just that's

just not true

what you need a lot of is time you have

to start really early if you want to see

tremendous growth over time Suze does a

really great job of providing an example

with two different women in this book

one woman is named Mary and she's 25

years old the other woman is named Dee

and she's 45 years old both Mary and Dee

decide to start saving $200 a month

every month from today moving forward

let's compare both of these women at the

age of 45 wendy was 45 she didn't have

any money invested and she was just

starting to think about investing in

retirement when Mary was 45 she had

already been investing for 20 years so

she had put 48 thousand dollars of her

own money which is 200 a month into her

retirement plan and assuming that she

got on average 8% return on her

man the total value of her retirement

plan investment was a hundred and

eighteen thousand five hundred eighty

nine dollars now let's look at the two

women when they were 65 Dee has now been

investing for twenty years so she's put

aside forty eight thousand dollars of

her own money and she's now saved one

hundred and eighteen thousand five

hundred eighty nine dollars but mary has

been investing for forty years she has

set aside ninety six thousand dollars in

her retirement plan the total value of

that given on average and eight percent

return on her investment is seven

hundred and two thousand eight hundred

and fifty six dollars so if you think

about it at the age of 65 the two women

had a difference of over five hundred

and eighty thousand dollars in the

amount that they were able to save and

Mary didn't have really any more money

than they did the only difference

between them was that Mary started

earlier okay she had the privilege of

time on her side she had an extra 20

years of saving the reason that this is

so important is because the government

sets limits to how much you can put

towards retirement each year so let's

say for example that these two women had

invested in traditional IRA accounts

this year 2015 the limit is five

thousand five hundred dollars so that

means that you can only put each month

four hundred and fifty eight dollars

towards your retirement plan and you

can't put any more than that so Mary

she'd be fine she's been putting two

hundred every month so that's totally

fine she's actually saving less than the

maximum she could put in the retirement

account but let's say Dee wants to be

really really aggressive she realizes

that she's forty five and she should

have started twenty years ago

she's like comment let me start now and

let me just put as much as I can in

order for her to be able to get to seven

hundred two thousand dollars by the time

she's 65 like Mary did she would have to

put a thousand two hundred dollars a

month from the time she starts investing

to when she turned 65 she literally

can't do that because the government

prevents her from doing that so it is

really really really important that if

you do have the time on your side that

you pay attention to this information

now and you actually take action if you

are like in your third

40s or 50s and you haven't sorted which

your retirement investing I don't want

you to be disheartened by this video

obviously it would be a lot better if

you had started earlier but you can't

you know cry over spilled milk you can't

go back and get that time back but what

what you can do is start now put the

maximum contribution towards your

retirement plan if you um if you can

afford that and yeah just sort of just

take action now because every day that

passes you you can't get that day back I

hope that this video kind of gave you a

quick idea of why it's so important that

you use time to your advantage and that

you make the most of the time that you

do have if you have any comments about

this video or questions or if you want

to know more about anything that I

mentioned definitely comment below like

the video give it a thumbs up share it

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channel if you have it yet already you

can contact me at mis be helpful @ so yeah go ahead and reach out

and if there's anything that you like to

know more about I'm here to help and

that's it until next time peace