Have you started to plan for your retirement?
Have you started to plan for your retirement? While you may be in your accumulation years, it is still important to begin considering your retirement years. Many investors are under the impression that if they simply throw some capital into their retirement plans 5-10 years before they anticipate retiring, that they will be financially independent and able to live out their retirement dreams. Unfortunately, this illusion often does not allow these individuals to comfortably retire. For this reason, and many others, individuals should begin planning for their retirement as early as possible.
Retirement refers to the point in time where you have enough income and assets at your disposal that working becomes optional, and retirement is affordable. Reaching financial independence earlier than your stated goal will provide you with the freedom to choose when you would like to officially step into retirement.
The Benefit Of Compound Interest
When you begin your retirement planning at an early age, you have the benefit of compound interest. In short, the money you invested will grow on top of itself, over and over again.
For example, if you invest $1,000 and those funds yield 10% return over the first year, at the end of the first year, you will have accumulated $1,100 in your investment account. Assuming you allow those funds to continue growing for the second year, also earning 10% return, you will have $1,210 invested in your account. Compound interest coupled with your regular contributions will enable your funds to accumulate more quickly than if you made lump sum contributions into the same account at a later point. When investing, it is important to have time on your side. Not only will time provide you with more capital, it can give you more time to cover in the event that the market corrects.
More Time To Recover
Another reason why it is important to plan for your retirement at an early age is that you will have the ability to recover in the event that the market corrects during your accumulation years. Market corrections are a natural occurrence, however when they occur near your retirement years, they can be debilitating financially.
In the event that your portfolio declines in value, planning early will allow you to make necessary changes within your portfolio’s allocation to place yourself back on track. Proper planning today will ensure a comfortable lifestyle in retirement in your future.
If you are unsure if you should begin planning for your retirement, talk with your financial advisor. Chances are that they will encourage you to start investing, even if it is only a small amount initially. Small amounts when left to grow over time, can become significant amounts of capital for your retirement.
There is no magic number for how much life insurance each individual should carry. Work with a financial advisor and/or insurance professional to discuss your specific financial goals, needs and personal household budget to determine which type of policy is best for you, and then what amount of coverage is required.
Life insurance retirement plans is is a crucial part of your financial retirement planning. Jim Trippon of Trippon Wealth Management has over 30 years experience in working with America’s wealthiest families in retirement planning. Jim is able to share the secrets of making money and KEEPING it with his retirement planning clients. Honest, practical and sound retirement planning advice is what makes Jim, The Advisor To America’s Millionaires.
Give us a call at 713-661-1040 and let’s start a conversation on how we can put our experience to work for you, TODAY!
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