Parental Guidance Should Include their Kids’ Retirement
“Many people early in their work life figure retirement isn’t worth thinking about because it’s so far down the road, and they’ve got other obligations. But getting a late start is a big mistake. First of all, they’re missing out on valuable years of compounding returns,” says Mark Henry, Charlotte NC.
Mark Henry is on a mission to help everyone with retirement. As he works with hundreds of people in North Carolina creating retirement plans (people who may be five, 10, 15 or more years out from retiring at age 65 or so), he’s discovered that some people are playing “catch up” with retirement savings. Many clients say they wish they had “started sooner.”
This realization brings up a real opportunity for parents to teach their grown children about the importance of starting young to put away money for their own retirements. The amount can be small at first, because compound interest is in their favor.
Parents need to encourage their kids once they start working to put away a small amount every month, making incremental adjustments to the amount invested for retirement as they start earning more money. Learning the basics about financial planning and investments when you’re young can pay off dramatically when you’re older.
Mark has written a series of articles about the subject of parental guidance about retirement, including this one, 5 Tips for Parents to Help Their Kids Get Started With Retirement Planning, which was published by ThirdAge.com, a consumer website covering money, health, career and other “vital living” subjects.