Starting early on retirement planning is important.
Are you a parent?
Did your child recently enter the workforce as an adult?
According to a recent Milwaukee Community Journal article titled “How parents can help their kids with retirement,” it is not too early to talk to them about saving for retirement.
Chances are you do not want your children to be in this situation.
Putting off saving will delay retirement.
Yes, they may have other financial obligations.
Bills, student loans, and rent are very real.
Still, delaying the discipline of saving will make them lose years of compounding returns.
How do you start this conversation?
First, explain the value of starting early on retirement savings.
Even if their salary is low, they should start small.
This habit is one to establish immediately.
Next, teach your child the basics of retirement.
If their employer has a 401(K) with a company match, they should use it.
Explain this is essentially "free" money.
Chances are your children will earn more as they get older.
They should be saving 10 to 15 percent of their paycheck for retirement.
This may seem like a lot early on.
They can work up to it as their pay increases.
Finally, help them take practical steps.
This involves creating a budget.
They should know how much they spend, give away, and save.
By being financially responsible now, they will reap the benefits in retirement.
Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.
For more information about estate planning in Overland Park, KS (and throughout the rest of Kansas and Missouri), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.
Reference: Milwaukee Community Journal (June 13, 2018) “How parents can help their kids with retirement”