Is it Possible for Younger Generations to Retire Wealthy?
For most individuals, the perfect plan is to retire wealthy after having worked for 30+ years and saving money along the way. Unfortunately though, more than half of Americans are so far behind with regards to stashing funds for their golden years that they will not be able to enjoy the lifestyle that they have become accustomed to while employed. If you would like to ensure that you retire comfortably, the advice below will help you achieve this goal.
Automate your Savings
Several of the younger folk state that they don’t have enough money to still save towards retirement after paying bills and student loans. However, research has shown many times over that when savings are deducted first, the same people seem to still be able to meet their financial obligations. Another advantage to having your savings automated is that there will be less temptation to purchase items you don’t really need.
Start Saving and Investing Immediately
The younger you are when you start saving and investing, the more time your nest egg will have to grow. As you get older, it becomes even more crucial to start saving towards your retirement as well. Another excellent piece of advice is to increase the amount of money you save each time you receive a raise or bonus of any sort. If you are able to pay off debt along the way, put the amount you were repaying towards it into one of your investment accounts and watch its growth rate skyrocket.
Be Willing to Take Calculated Risks
In most cases, you will never be able to become wealthy simply by saving alone. This is why it’s important to earn additional funds by means of investing. While compiling a low-risk portfolio may feel safer, it won’t provide you with much of a return over time. If you would like to experience an above average rate of return, you will have to work with a professional financial advisor and include a mix of low, medium and high-risk investments in your portfolio.
Don’t Pause and Resume Savings
Over time, it can be tempting to put a halt on your automated savings, especially when finances become tighter. However, most individuals who do this fail to start saving again at a later stage and this derails their investment plans. The only time you should consider placing a temporary hold on your savings and investment plans is if you are dealing with severe financial constraints such as loss of employment.
Keep a Close Eye on Fees
All types of investments will involve some sort of fee structure – even many regular savings and checking accounts. These charges can accumulate substantially over time, which is why it’s essential to do as much as possible to reduce them. As a result, you should be aware of the fees you are being charged and what each of them is for. Not knowing what you are being billed for or how much you are paying could cost you thousands of dollars more than they should.
Whether you’ll retire wealthy or not will depend largely on the actions you take right now. Contact our team today to find out how a tailor-made portfolio can help you achieve your financial goals over time.