by Steve Drake, Ph.D., CPA, CGMA and CFP ®
We are all busy and we concentrate on our careers, making money, raising a family and sometimes leave to fate having sufficient assets available for retirement. Many of us figure that the money will magically be there when we need it. But, will the money be there when it is needed? It is important to realize that it takes a concerted effort to create a retirement nest egg that will allow the continuation of the life style you have grown accustomed to. We will all grow old and we will retire but will we have the standard of living that we want? With some basic knowledge of investments, economics and perseverance you will have a great retirement that you can enjoy with your spouse and family. Let’s learn how to do it.
There are many aspects to achieving your desired retirement nest egg. Here are some basics. First, there is the concept of the time value of money. This means that money grows in a geometric progression by earning compound interest. Here are some examples to give you the idea.