Tuesday, May 25, 2010
A 20-something's Guide for Preparing for Retirement at 55
9:45 PM | 
Posted by
Briana Ford
You may think you're too young to think about retirement, especially if you just graduated and are heading into your first entry level position, but it is never too early to prepare. With social security dwindling due to the baby boomers retiring, establishing financial security early is ideal. Managing your personal finances is key to being able to retire after 30 years of hard work.
Analyze your debt. Calculate your balance on credit cards and take into account your student loans.
Account for your bills. Whether you're buying, renting, or leasing a car, apartment, or home, these will be crucial. Be sure if you're in the market for any of these things that you are comfortable making payments regularly.
Secure regular income. With this economy, job security is a major issue. Your income will play a huge role in preparation for your retirement. Steady income will help you in your financial planning.
Here's a break down of where your money should be going:
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Analyze your debt. Calculate your balance on credit cards and take into account your student loans.
Account for your bills. Whether you're buying, renting, or leasing a car, apartment, or home, these will be crucial. Be sure if you're in the market for any of these things that you are comfortable making payments regularly.
Secure regular income. With this economy, job security is a major issue. Your income will play a huge role in preparation for your retirement. Steady income will help you in your financial planning.
Here's a break down of where your money should be going:
- 50% of your check should go towards bills such as your mortgage/rent, car note, utilities, etc.
- 20% of your money should be used to take care of your debt from credit cards and student loans.
- 15%, divided in half for retirement and a savings/emergency fund, is recommended.
- The other 15% is available for your disposable income.
- If this plan is followed consistently for 30 years or more, you will have a nice nest egg to retire on, without even including pension or a 401K.
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