The stark reality is that you simply can’t rely on Social Security, play a guessing game, or hope to hit the Lotto. Saving for retirement takes careful planning, setting realistic goals, and, most importantly, time. For many young workers entering the workforce, retirement may be the last thing on their mind, but at black enterprise we believe that you can never start too early. Use the following examples to help you get on the path to a bountiful retirement.
INVEST, EVEN WHEN YOU’RE NOT ELIGIBLE
Growing up in a single-parent home on a tight budget, the principle of saving was strictly enforced in Kason Davis’s household. Though at the age of 14 Davis could not grasp the concept of saving and would have preferred buying a pair of the newest Air Jordans or video games, his mother’s lessons now prove beneficial to him.
“My mother always told me that it was more important to purchase necessities and put aside a set amount of money in savings,†explains Davis, now 28. “She would always say the more I saved now, the quicker I could retire.â€
Davis was reintroduced to the concept of saving and retirement planning during the summer of 2003 as an intern at Procter & Gamble. “During our intern orientation one of the employees spoke briefly about the importance of 401(k) investing and retirement planning,†says the Houston resident. “Although I wasn’t eligible to invest as an intern in the company 401(k) plan, we were eligible to invest in the company’s stock through its shareholder program.â€
After interning with the company for three summers he invested a total of $3,000 in company stock and reaped a $700 gain.
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