With everything that’s been going on, I haven’t been able to update for the past several weeks. There is an article on MSN Money that you should check out, as it gives great retirement investment advice; regardless of whether or not you have the $225 per month they suggest, the article gives some plans they deem worth investing in, even if you only have a small amount. The article can be read: Here .
They suggest that if you invest $225 per month, starting in your 20’s, you will retire with $1 Million. For most of us, that ship has sailed long ago. And for most people in their twenties, barely getting by, coming up with $225 per month might be a pipe dream. However, investing something for retirement each month is the best way to go, even if it is only a small amount.
They suggest some investment firms and plans that are geared to your retirement date. For example, they recommend Vanguard Target Retirement 2050 which targets a 2050 retirement date. These funds are typically more aggressive early on, and then more conservative as the target date draws near. This is a theoretically good fund for someone in their 20’s, but again, they have corresponding funds for different years (for example, a fund with a 2040 date is more suited for those in their thirties.) Also, though this particular plan was recommended, several brokerage firms, such as Fidelity and T.Rowe Price, offer similar plans based on a targeted retirement date. Each firm and fund will have its own minimum buy-in, fees, etc.)
Another recommendation is Schwab S&P 500 Index, which they suggest is an index fund set for the “long haul”, based on the expectation that stock values will gradually go up over time. The buy-in is only $100, which is comparatively very low.
Regardless of the specific fund you choose, or whether you have a little or a lot to invest, it is a good idea to start, no matter what the age. The time flies by, and with the uncertainty of social security, as well as real estate values, you can only count on yourself to make sure you have money to live on once your working days are over.