A trainer’s retirement plan

Q: I am a 41-year-old ex-felon. I’ve been out of the workforce for 20 years. I’m pursuing a career in the fitness industry as a personal trainer. For someone my age and in my position, what would be a viable retirement savings plan?
–R. Dixon, Via the Internet

A: At age 41, you will probably work another 20 to 25 years before you retire, so it will be important to create a savings strategy that can help make up for all the years you weren’t saving. Choosing a career as a personal trainer means that you will have to work extra hard to establish a wage that gives you the best opportunity to retire comfortably.

The American Council on Exercise (ACE) says that in 2003, the typical salary range for a personal trainer was $30,000 to $35,000. The average hourly wage was $37 per hour. ACE also found that the minimum hourly wage was $7 and the maximum was $75. As you can see, salary potential can vary widely.

You can begin saving for retirement by placing $3,000 per year into an IRA account. And if it earns 8% annually until you turn 65, you will accumulate $216,318 before taxes. You may also want to consider taking out a variable life insurance policy. Variable life policies are more expensive and have some investment risk, but there are conservative investment choices available within them. So given the fact that you will need life insurance anyway, it could be the best way for you to build money for retirement.

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