As a financial planner, the most common question that a new client will ask me is if they will be able to afford to retire. Whether a “youngster” just starting to save or an “oldster” getting ready to retire in several years, individuals want to understand what goal to shoot for.
I am always pleased to assist youngsters in starting to save as I know they have years for the power of the compounding of money to assist them. A contribution of $100 per month over 40 years at a 7% annual rate of return compounds to $253,557 or $515,365 over 50 years. Millennials seem to get it, or perhaps they have parents and grandparents urging them to start saving early.