Here are four pieces of advice to ensure you reap maximum rewards when you reach your golden years.
When you start saving early, you can benefit from compounding interest for years. When you invest early and continue no matter the economic climate, you can benefit from dollar cost averaging—investing a fixed amount regularly rather than trying to find the perfect time to invest.
Sometimes, specific sectors of the economy fail while others continue to do well. Some investment products weaken or fall out of favor over time too.
The LTSE (Long Term Stock Exchange) is a new national securities exchange focused on long-term investing. Some financial planners may not understand the LTSE if trained several years ago.
Your financial plan can fall apart if you must make large debt payments in retirement. As your golden years approach, focus on eliminating as much debt as possible to reduce the amount of income needed for monthly bills.
Start Early
When you start saving early, you can benefit from compounding interest for years. When you invest early and continue no matter the economic climate, you can benefit from dollar cost averaging—investing a fixed amount regularly rather than trying to find the perfect time to invest.
Starting early also means your portfolio has time to recover from any mistakes you make. Save and invest as much as possible, but never use a credit card for investing because the return may not exceed the interest you pay.
Diversify
Sometimes, specific sectors of the economy fail while others continue to do well. Some investment products weaken or fall out of favor over time too.
When you diversify your investments, you invest across a range of industries and investment types to make sure that failures don't have too much of a negative impact on your retirement funding.
Investment diversification is a risk management tool that prevents you from being exposed to the full volatility of an investment type or industry.
Consider the LTSE
The LTSE (Long Term Stock Exchange) is a new national securities exchange focused on long-term investing. Some financial planners may not understand the LTSE if trained several years ago.
Proposed in 2011 and launched in September 2020, the LTSE is an SEC-registered platform that trades stock in companies focused on long-term success for stakeholders. Businesses listed on the LTSE also commit to a list of sustainable and inclusive business practices.
Eliminate Debt
Your financial plan can fall apart if you must make large debt payments in retirement. As your golden years approach, focus on eliminating as much debt as possible to reduce the amount of income needed for monthly bills.
Pay off credit card debts first because they can have the highest interest rates. Paying old debt in retirement means you may not have the money for traveling and other retirement activities.
To make a retirement plan that works for you, consider all your options and get help when needed to ensure that your choices are the best. When you make a plan that includes maximum savings and a smart range of investments, your golden years can be your best.
To make a retirement plan that works for you, consider all your options and get help when needed to ensure that your choices are the best. When you make a plan that includes maximum savings and a smart range of investments, your golden years can be your best.
