It’s Not Too Late to Start Financial Planning - dummies

It’s Not Too Late to Start Financial Planning

By Stephen L. Nelson

Another common trap that prevents people from saving money for retirement is they give up, thinking that it’s too late to start. Mathematically speaking, that’s just dead wrong. No matter what your age, you can use Quicken 2012 to help plan your financial future.

You may think that wealth-building schemes that rely on compound interest work only for young people. It’s true that wealth building can be very easy for someone who’s young. Often, young people need to make only a single, clever decision in order to build wealth.

For example, if a 25-year-old, pack-per-day smoker quits smoking and puts the money he saves into savings, he can rather easily build $1,000,000 by retirement. All he needs to do is save his money in an IRA and select a small-company, stock mutual index fund. (Remember, adjusted for inflation, this person will probably have between $3,000,000 and $4,000,000 of inflated dollars.)

You can’t do that if you’re 50 years old; you can’t make one decision and expect that single good decision to grow to $1,000,000.

But there’s another angle in all this: You aren’t limited to making a single good decision. Oh, sure. That’s easiest. But if you make five or six or seven good decisions, you can still build substantial wealth by the time you stop working.

You possess more life experience and more wisdom, than someone who’s 25. You can use your experience and wisdom to make a greater number of good decisions, and that can produce the wealth you need.