Why You Should Take Retirement Planning Seriously?? While everyone knows that they need to save for the future, there’s a widely known anonymous quote : “some people spend more time planning a two-week vacation than their own retirement”. This reinforces the fact that many people do not take financial planning seriously enough to start early. As a result, many individuals do not have enough money saved up to retire or run the risk of outliving their nest egg. In today’s economic conditions, going back to work may not be an available option.
Starting the planning process early helps build a solid foundation for later in life when the time comes to transition from work to a more relaxed lifestyle. This is especially true for individuals who would like to retire early. Starting the retirement savings process early also opens up more investment opportunities that can earn a higher return. It also enables the saving account to grow at a faster rate. Starting later in life may require a lot of catching up. People may then feel the need to make aggressive investments to compensate for lost time, which can be extremely risky.
– 401k: employer retirement plan, non-taxable.
– IRA: retirement account, non-taxable.
– CD: time deposit savings account.
The key to planning for retirement is another well-known quote that states: “prior planning prevents poor performance”. The sooner you start this process, the sooner you will be financially prepared for the future. Take retirement planning seriously; it’s never too early to begin planning for retirement.
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