IT’S BEST TO SAVE AND INVEST EARLY, WHILE YOU ARE STILL YOUNG…. BUT IT’S NEVER TOO LATE TO BEGIN

By Gerald Korson When you’re young and just starting off in your career, you may not be so inclined to think about retirement. It seems so far off into the future that planning for retirement may not be much of a priority. Yet early in life is the ideal time to start your retirement plan, and for that very same reason. Most financial experts recommend you begin putting away for retirement while in your 20s, when retirement is still likely to be four or five decades away. Why? Because the money you save or invest has four or five decades to grow. By maximizing the power of compound interest, the funds you put aside now can result in even bigger rewards later. It’s never too late to start saving, of course. The important thing is that you do make a habit of saving for retirement. A recent article in CNN Money provides an illustration demonstrating how “the earlier, the better” applies here: -- If at age 25 you start saving $3,000 a year in a tax-deferred retirement account but stop saving after 10 years, you will have invested $30,000 of your own money. By age 65, assuming a 7% annual return, your retirement fund will have grown to more than $338,000 – even without adding to the fund after the age of 35. That’s more than 11 times your investment. -- If you start saving at age 35, and keep setting aside $3,000 a year in that same account at the same annual return for the next 30 years, you will have contributed $90,000 – but your retirement fund will only have grown to about 303,000, a little more than three times your investment. EARLY BLOOMERS, LATE STARTERS So younger Knights in their 20s and 30s are strongly advised to consult their field agent about setting up a retirement strategy through the Knights of Columbus. Such a strategy will likely involve through whole-life insurance, but may also include IRAs and other investment tools. But what if you’re older — in your 40s or 50s, or perhaps even older — and really haven’t started on a retirement plan or are far behind in preparing for retirement? While it’s best to start early, it’s not too late to make significant gains that will help fund your post-employment years. The same advice applies: Talk to your field agent. He is well trained to assess your situation and provide valuable recommendations. WHAT TO DO? At any age and any phase of life, it’s time to get serious about retirement planning if you haven’t already. Here are some ways to do this: Start Today. You will always have living expenses, and you might always carry some kind of debt. Don’t let those be excuses for not putting money aside for retirement. If you make a habit of saving and investing, it will pay off in the long run. The more you put it off, the further behind toward retirement you will become. Take advantage of what your employer offers. Your company might offer retirement accounts and might even provide matching funds. Consider that option, and be aware that with certain types of plans, if you are over 50, you might qualify for making larger “catch-up contributions.” Let your trustworthy field agent help you compare these to what the Knights of Columbus have to offer. Consider an IRA of your own. Especially if you lack an employer-sponsored plan, look into an IRA for yourself and one for your spouse. There is even a special IRA for self- employed individuals (the SEP-IRA). Your maximum contribution is larger when you’re over 50, and entrepreneurs can contribute up to 20 percent of their annual income to their SEP-IRA. Work with an expert. Here’s where your Knights of Columbus field agent comes in once again. Investment options are many, and your needs depend heavily upon your financial picture, your family needs, and your personal goals. He can help guide you and identify a strategy that is right for you.

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