Start In 20s For Successful Financial Aging

CLEVELAND -- There's nothing like the peace of mind from knowing that you'll be able to retire without having to struggle financially, according to this week's Successful Aging report.

Ron Martin is a rarity. He is a 20-something investor largely because of his parents' example.

"When I was in college, because of their saving, I wasn't having to do what a lot of my other friends were doing," Martin said.

One example is like working two jobs.

"In your 20s, it's really critical at that juncture to save first and then start thinking about spending," said Bob Smith of Spero-Smith Investments.

WEWS said it's important to save something, and watch the magic of it accumulating interest.

By the time a person reaches 30 years old, the money will have accumulated tremendously.

If you are the breadwinner, you should consider a couple other options in addition to a retirement fund.

"So in your 30s, with children, you need to think about disability income and life insurance," Smith said.

By 40-something, you should have a plan for the kids' college expenses.

"They also have to be firmly committed now to making sure they have started to set money aside," Smith said. "And if they haven't started to save, they have to start right now and very aggressively."

If you are in your 50s and are watching your investments grow smaller every day, don't panic.

Stocks will still be the fastest way to recoup those losses before you retire.

"I hope actually to be able to move to Europe someday and make a living over there," Martin said.

Remember that a huge key is not key to successful financial aging.

"Financial strength comes from what you save more so than what you make," Smith said.

If you think you may need to dip into some of your savings over the next four or five years, invest that portion of the money in bonds or cash so you're not so dependent on the ups and downs of the stock market.