By Phyllis Dolinsky
Every time you earn any money or get a present of money, you should (must) put 10% of it away. The younger you are when you begin, the better, for you have the gift of time. It is amazing how the small change adds up. Even found money (pennies) in the street add up.
A small child who gets paid for chores around the house may contribute to a Roth IRA. This is the best IRA plan for young people. It gains a respectable amount of interest over the years and when it is withdrawn years later, NO TAXES! Yes, it is paid into with tax paid money, but it is a worthwhile learning experience and what a fantastic reward years later.
Too many of us go into retirement with Social Security and a pension we have worked hard for and deserve. That may be great in the beginning, but ten years down the road, these may no longer meets the needs of the now present day situation. People are living longer and are much more active than their parents were when they retired. Therefore, in addition, to the above, the savings from a Roth IRA started with small amounts at a young age may surpass both the Pension and Social Security benefits together. It takes small effort to get started and reaps huge rewards.
This takes discipline, but now, more than ever, we must teach our children, starting as early as possible and maybe, just maybe, the Golden Years won’t just be a myth as it is for many of us now.