Retirement. The reward for a lifetime of hard work.
What is retirement planning? It is a very important part of your financial plan and helps you grow savings and invest wisely to prepare for that time when work becomes optional. Retirement planning changes as you move through different life stages and Sound Advice Financial can help you create a realistic and achievable retirement plan for whatever stage of life you are in.
When should retirement planning start? Right now.
Retirement planning in your 20s and 30s
Early in your working life, retirement may be something that you don’t even think about, but it is the best time to start planning.
The concept of “retirement” today is not what it used to be. Instead of thinking about retirement as that thing old people do, it should be thought of as planning for that time when work becomes optional. The better you prepare, the sooner that time becomes a reality. In addition, because of the power of compound interest, (when your investment gains generate more gains), the sooner you start, the closer you are to that point of financial independence.
Every investment has the potential to be a significant contributor to your future lifestyle. As you settle into your career and make more money, your life may also become more complicated, with marriage, starting a family, buying your first home, or going back to school. But it’s important to stay the course and keep contributing to your retirement, making sure your contributions are keeping pace with your income and letting the power of compound earnings bring the point of financial independence closer.
Retirement planning in your 40s and 50s
You’ve probably reached a point of financial stability by your 40s or 50s and may be thinking, “what next?” Will you want to continue working full-time? Or would you prefer to travel? Spend time with your family, or focus on volunteer work? Maybe even start a new business?
If you have been saving and investing for years the time of financial independence is getting close, or maybe has even arrived. If not, the realities of time have probably begun to sink in.
Regardless, now is the time to drill deep, focus on what you want to accomplish and, more importantly, what concrete steps you need to execute on in order to reach the goal of financial independence.
Nearing retirement or the point of financial independence
In your 60s (or sooner if you have been successful) you’ll need to examine how you’ll cover your living expenses , or better yet, how you’ll live the life you want to live. How will you turn your financial assets into an income stream that grows with inflation, without too much risk to your nest egg? This is the time to make shifts in your asset allocation plan to address these concerns and protect the capital you have earned.
Retirement planning helps you:
- Set retirement goals, including the income you’ll need and want when you retire
- Identify the challenges and risks you face to achieve financial independence
- Determine appropriate investments and asset allocation strategy
- Implement, monitor, and update your progress and investment performance based on changing circumstances and needs
- Manage your income stream once you are no longer working
Sound Advice Financial will take the time to fully understand your retirement goals and objectives, and help you create a plan for your financial independence that is comprehensive and realistic. We want you to be financially prepared when you reach that time that work has become optional.
Plan well and retire well, with Sound Advice Financial.