Simple five-step plan allows average Americans to save for retirement without breaking the bank.
InvestorPlace.com Editor Jeff Reeves has put together an easy-to-follow, 365-day regimen to help people save for retirement and secure their financial future without putting up a huge sum of money today.
Many Americans think retirement is out of reach or that investing is just too expensive. Thin stock market volume and mutual fund outflows tell the story of the “death of the retail investor.” And many companies have cut back on their 401(k) and retirement benefits.
Reeves’ five-step plan is meant to help average investors turn a small amount of seed capital into a respectable nest egg through the use of compound interest. The idea involves putting away a little bit of money here and there that will grow modestly over time, and then reinvesting those gains so they continue to snowball until retirement.
The plan is simple: Save $1 a day for a year, and then invest it in one of five ways. With just a 3% return on the initial investment and investing an additional $365 each year, it would equal more than $18,700 in 30 years.
“That’s not enough to buy your own private island, but very impressive on just $1 a day,” said Reeves. “Especially when you consider that if you put that cash under your mattress without the benefit of compound interest, you’d have only $10,950. So you’re giving up a 70% return on your investment.”
The guide includes tips for indentifying what type of investing best suits you, how to create a plan of action, and how to safely reinvest profits.
To read the full plan on how to save for retirement on $1 a day, visit http://investorplace.com/2012/08/how-to-invest-profitably-on-1-a-day/.
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