When Should You Begin Planning For Retirement?

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When Should You Begin Planning For Retirement?

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It’s never too early to begin planning for your retirement. Even if you are older and have let some life go by, it’s never too late for retirement planning. Seeking the help of a professional when it comes to retirement planning will help secure your financial future. A professional will help guide you toward your goal and suggest options that may provide an opportunity for significant return, both now and in the future. You should have a financial retirement goal in mind and work with your advisor toward achieving it.

Why is it important to start retirement planning early?

It’s quite simple – the sooner you start, the more you’ll be able to save, and the more time your money will have to grow. Let compound interest work for you instead of against you. It’s important while you’re young to realize the potential pitfalls of spending. Those pitfalls can lead you to become overextended with mounting debt – debt that can negatively affect your credit, causing you to pay more in interest in the long run. It’s a vicious cycle, and one you’d be wise to avoid. Financial considerations you may face in the future include:

    • Buying a house
    • Getting married
    • Getting divorced
    • Having children
    • Paying for education expenses
    • Losing your job or taking a cut in pay
    • Having business issues
    • Being diagnosed with a chronic, critical or terminal illness
    • Becoming disabled
    • Having your purchasing power reduced due to inflation
    • Experiencing unexpected financial setbacks that lead to bankruptcy

All of these situations can have a negative impact on your retirement future and can quickly wipe out any savings you do have, causing you to be dependent strictly on Social Security. That is, if you don’t have a retirement plan in place that addresses these potential situations.

The fact of the matter is, fewer people are being covered under pension plans, and Social Security was never meant to be a stand-alone retirement system. Throughout your life, if you don’t save money and use retirement planning services to help your money grow, chances are you won’t have much of a financial cushion and could be in trouble as you grow older. There is a reason Albert Einstein is credited with calling compound interest “The 8th wonder of the world.” It can either work for you or against you. Those who understand it, earn it. Those who don’t, pay it.

What if you are already older and closer to retirement?

If you have not saved and invested until now, it is not too late. By seeking counsel from a professional, you can maximize your returns and minimize the risk on the money you contribute to your plan. Financial professionals can guide you based on your current and future potential earnings, and enable you to take control of your investments and retirement funds, as well as any other assets and liabilities you may have.

If you have some funds at your disposal, maximize your returns

Whether you have a great deal of money or just a small amount, you should use it wisely and invest it so that you earn more for the future. Professional retirement planning services will help you with asset allocation and fine-tune your plans so you make the most of your money. This will enable you to enjoy your retirement days comfortably.

At a minimum, it is important that you plan to have enough money to take care of basic living expenses and any potential healthcare expenses. With proper prior planning, you’ll be able to enjoy your retirement without financial stress.