Actually you may need to be a millionaire if you want to have a comfortable retirement!
So how can a young family create an adequate pool of funds for their retirement.
Well the simple answer is it can be done one of two ways: Spend less than you make or Make more than you spend. In other words, is simply to live at least somewhat below your means.
Initially this will allow you to build up a cash reserve for those unplanned and unexpected expenses that always seem to pop-up!
Debt is going to be part of a growing family’s finances for some time. Hopefully this is primarily for the purchase of your home and transportation needs – not short-term debt simply to provide funding for your wants and wishes. As funds allow, you will want to manage this debt to your advantage.
The main step is to save and invest to achieve your ultimate goals. This means you will take advantage of any employer retirement plan you have access to – especially if you are eligible for employer matches. Otherwise look to a traditional or Roth IRA to save independently. Review your investment options to be sure you are allocating these funds appropriately and in a cost-effective manner.
Initially the progress will seem slow, but with time on your side you can accumulate the funds necessary to achieve a successful retirement.
A professional financial planner can help you get and stay on track to achieve your goals.