- Start now.
- No really, start now.
The thing is, no matter where you are in your working life, the time to start saving for retirement is immediately. That’s because the sooner you start saving, the more you could potentially end up with when you’re ready to retire. Not sure about first steps? Don’t worry. A financial representative can help you figure out the best way to plot a course to a comfortable retirement.
Know what you need
A critical consideration in putting together a plan to save for retirement is to have a working estimate of how much money you’ll need to have saved by the time you’re ready to stop working. Your target number will be driven by factors such as — your lifestyle, health issues, tax bracket, retirement age, and cost of living, among others.
Accumulating assets for retirement truly is an investment in your future. But finding the best way to invest your assets to achieve your retirement goals can feel a bit daunting. Fortunately, there’s a general rule of thumb that can help you make sense of it all — the closer you are to retirement, the more conservative your investments should be. And inversely, the further you are from retirement the more you should consider equity investments which carry greater risk but in general have achieved historically stronger long-term performance results when compared to more conservative vehicles and possibly allow for you to have time to recover if you happen to experience economic conditions that adversely affect your retirement portfolio. (Please note that past performance does not guarantee future results.)
No matter which stage you’re at you should consider consulting a financial professional to establish an investing approach that best fits your circumstances.