Credit Advice

Beginning to save is like quitting smoking.  It's very hard to do if you are starting from scratch, but that does not mean it is not worth doing.  You should start by making a budget so that you truly know what you can afford to put away for the older you.  Once you know how much extra cash you have in your budget, put all you can toward the retirement account, up to the irs limit that applies.  It may be that you need to work longer than 7 years, depending on how your saving and investing goes.  The nice thing is that saving a percentage of your income gives you an idea of how much income you really need to live on.  For example, let's say you make $50,000 and you save 10% of your salary.  That means that, right off the bat, you are living on only $45,000.  In addition, when you do retire, you'll stop paying into Social Security, which is another 7.65% of your pre-retirement income that won't need to be replace.  Put it all together and you would only need $41,175 to live on, so with the lower income, you are probably paying less in income tax, too.  The most important thing is, no matter how much or how little you can put away, start now and build up as quickly as you can.  You should eventually try to save 15% of your income for retirement, more if you can afford it.

When I reach 66 I can draw 100% social security with no penalty and I can work all I want.  If I wait tell 70, I get a big bonus by waiting from social security.  If I need extra cash I'm going to draw the ss at 66 and keep working.  CASH IS kING!!!!!!!!!!!!!!!!!!!