Why 20-Somethings Should Think About Their Retirement Fund Now

It takes time to grow your money

When it comes to your Retirement Fund, investing is the way to go. Saving money in your bank is not enough. Banks are great for your Emergency Fund (I will talk about this soon in another blog post) but for your Retirement Fund which you’ll be using after 35 to 40 years, it has to keep up with the inflation. This is why you have to grow your money through investing in a Unit Investment Trust Fund, Mutual Fund, or Variable Unit-Linked Insurance.

You have to understand that it takes time to grow your money. For example, you’ve decided to get a VUL and you decided to invest in blue chip companies, now as long as the companies you’ve invested in are earning money, your investment will grow too. As this happens and as time goes by, your money just grows and grows. Do you get the idea? If you start investing now, can you imagine how much your money would have grown by the time you’re ready to retire?

You need more than you realize

When I ask some of my clients how much they think they need for their retirement, they usually say “ten million?” or “five million?” Others even go lower and in my head I’m just like “WHAT?! No!!!!” Stop this madness. Here’s how you compute for your Retirement Fund Need:

retirement computation

Ya’ll should compute for the maximum monthly budget you’d like to have cause remember: INFLATION. When I computed for my retirement, I got Php 108,000,000. How about you?

Your 20s are the perfect time to invest in your future

Gif from losteveragain

Now is the time you should be investing in yourself, especially for your retirement. In the next few years, when you decide to settle down and start a family, your priorities will change. You will be saving up and investing for your own house, your children’s education, and your family’s day to day needs. Saving only for you will be pushed to the side. Reality is, a lot of people from our parents’ generation didn’t prioritize investing when they were young and when they finally decided to invest, they only had less than 10 years until they retire and we all know growth from investment takes time.

You might be wondering “but what if I don’t plan to start a family ever in my life?”

It’s still important that you start investing as soon as possible cause if you go back to our #1 reason, it takes time to grow your money. If you really want your money to grow, especially for your retirement, time is your best friend.

Now I know some of you may also be thinking “I don’t plan to retire anyway. I’m passionate about my work!”

But wouldn’t it be nice to work entirely from a place of pure passion? Imagine doing what you love without having to worry about your bills. Imagine being able to go wherever you wanna go because you can. Plus, you could also use your retirement fund to finance a passion project or your dream non-profit!

Gif from giphy.com

Let us not repeat the same mistakes of the generations before us. Our children should not be our source of income during our retirement. Let’s take control of our lives. Let’s take control of our finances. Let us live lives we can be proud of!

If you have questions, please do hit me up with a message at:


or message me at Thrive Hive.

Can’t wait to hear from you!




Thanks to Ish for the awesome pic I used as my feature image.

Check out his ig: @antonlumanog


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