Dear Students,
I hope this letter finds you well! In this letter, I would like to talk about the importance of having a retirement account and starting it at a young age. Not many people think about their retirement at a young age since they believe they have many years of productive years and perfect health ahead. They live in the present, and while a minority of young individuals have savings accounts, cash cushions, and even retirement accounts, others prefer to live above their means and treat themselves. In the end, some retirees can afford to travel abroad and continue living their lives without worrying about their finances, and others can barely pay for trivial things.
A retirement account is the most financially literate decision anyone can make. It does not only indicate how intelligent a person is for being proactive, but it proves that the individual cares for their family members as well since they will not rely on their children or other relatives to care for them. Indeed, the stock market will not make a future retiree wealthy, but it will definitely help raise their standard of living in old age. Without savings and investments, people can only count on the state pension, which, as a rule, is several times lower than the current income of an employee. When thinking of retirement accounts, one must first see the figures. For example, if a person invests $5,000 now, they will receive over $200,000, owing to compound interest and constant growth of stock markets (Kilgour, 2020). In this sense, it is better to be proactive when it comes to one’s own future and retirement so that there is no need to seem a burden to one’s family and continue living the same lifestyle without having to work full time.
Reference
Kilgour, J. G. (2020). The role and importance of individual retirement accounts. Compensation & Benefits Review, 52(1), 19-26. Web.