When should you begin planning for retirement — and what steps should you take to get started?
These are common questions. But the answers aren’t necessarily cut and dry. It depends on factors including (but not limited to) your age and risk tolerance.
However, some principles of retirement planning are worth knowing at any age. Keep reading to learn how to make a game plan for your future, what elements every retirement portfolio needs, and some actionable tips to help you on your journey.
Consider the Continuum
The continuum from working years to retirement years is something everyone will experience. Some are closer than others, but everyone needs to think about retirement eventually.
It doesn’t matter if you’re 35, 45, 55, 65, or even 75 — you need to continue to grow your money if you want to live comfortably as you age.
What if you’re currently 35 or 45 and haven’t started? Don’t beat yourself up. Something is better than nothing, and the best time to start is now. Which leads to the next point…
How to Get Started
If you want to save for retirement, the obvious first step is “start saving.”
But saving may not be enough — especially now, when the average life expectancy is over 75 years. A money market account that pays less than 1% interest isn’t going to sustain most people for the rest of their lives.
For many people, it’s necessary to invest. That means putting your money in a place where you can get the most return possible within your risk tolerance.
How Old Are You?
Your investment objectives and style will likely depend on your age.
For example, nobody wants their portfolio to go down 50 percent. But at 25 years old you can wait it out. At 55, you don’t have as much time to recover.
Between your twenties and your retirement years, you may want to transition from 100 percent growth and higher risk to a winning retirement portfolio strategy.
As you may recall from this post , a winning retirement portfolio needs to contain three elements:
It’s important to transition from growth mode to an intelligent, winning retirement strategy so that you can stay safe in the future.
The sooner you start thinking about your future plans, the better! Even if you love working and have no plans to retire, it’s still important to consider the element of safety. It’s important to build it into your portfolio in case you end up needing it!
Get Started Today
The best time to start saving for retirement was probably several years ago … The next best time is today.
Start by thinking about building a winning portfolio that can evolve with you as you age.
Need help getting started?
At Ty J. Young Wealth Management, we specialize in helping people create their own unique winning retirement strategy. We’ve spent years amassing the experience and resources to help you build an intelligent portfolio that’s built to last. Ready to get started? Reach out today.
What are your retirement saving objectives?