Take Responsibility and Assure a Comfortable Retirement with a Good Money Plan

You are 21 and start working and probably at this moment you don’t think on the financial needs when you will reach the age for retirement. It is time that these people need to be informed about the consequences of the ageing of the population. This can happen by their parents and also the school can educate their students for money plans.

If you start very early with saving money into your savings account your capital will grow faster instead of waiting a few years more. Of course it is different for everyone; some people can afford to save more because they earn more money but everyone needs to make a money plan for the future. Avoid the expenses which you really don’t need in case you have problems for saving a fixed amount every month! Don’t make long travels if you can’t afford it; choose for a city trip or a vacation on the beach in your hometown. There are several ways to save money; just cut these which you really don’t need.

There are certain money plans which give you immediately some benefits in fewer taxes. These laws are different from country to country and from continent to continent. Probably there are still countries where such systems don’t exist.

In my hometown we can save at the moment 810.00 each year in a pension fund. Every year there is revision of the maximum amount. We get some tax benefits and we can choose between a savings plan with a fixed interest rate or one that invest in mutual funds according the profile you choose.

If you are a defensive investor you can best save a great part in bonds; an aggressive investor will likely invest more in shares. Everyone has his own opinion but I am convinced if you diversify that investing in shares have the most chance for the highest return.

Starting early is the key to have succes for investing in mutual funds.

There are several other savings plans:
– invest every month a limit amount in mutual funds
– be sure that you have enough money into your saving accounts for the necessary needs before you consider investing in mutual funds.
– take a loan if you buy a house; this gives you tax benefits and you can save a lot money before you reach the age of retirement.

Don’t buy more than you can afford and be sure that you can save every month for the future. Take hospitality insurance for the possible medical expenses you can have when you become older! The risk for diseases is much higher and can save you a lot of money.

Make your plan early because the day of your retirement will be there before you realize!