Retirement can seem incredibly far away to many people, and as a result, they don’t plan for it financially. More than a third of Americans have not saved money for retirement. Many of these people with no savings work in jobs that offer 401k, which allows people to invest a portion of their income tax-free. About half of Americans don’t take advantage of the 401k available to them. The best way to make sure that you will be able to retire in the future is to meet with an investment advisor and set financial goals. Here are two things they can help you with.
Decide how to invest your money
No matter what your financial situation, you should always invest, even if it is only $ 20 in salary. 25 years ago, if you had invested $ 1,000 in the stock market, it would be worth more than $ 14,000 today. If you just save $ 1,200 a year for forty years in a 401k, a normal return will net you over $ 200,000. An investment advisor can help you choose the best strategy for your money and where to put it. If you are young, investing in high risk but high yielding stocks is a common strategy. As we age, it is common to shift capital towards more conservative stocks.
Retirement is an expensive lifestyle choice
In retirement, the average US citizen will receive approximately $ 15,000 per year in Social Security benefits. A very conservative lifestyle, with little or no travel, will cost an average retiree over $ 40,000. In short, it is necessary to have savings if you want to retire. A 401k account or other stock exchange account is one of the best ways to close the gap. In addition, the average life expectancy of Americans today is over 85 years, which is significantly higher than for generations past. This means that the retirement will be longer, and therefore more expensive. The normal cost of living will also generally increase when you stop working. With more free time, annual entertainment and travel expenses will often increase dramatically. Making sure your nest egg has enough for you to retire and enjoy is a goal financial companies can help you achieve. As mentioned above, an investment advisor can help you strategize to build your money over time and provide you with the amount you need for your retirement.
While most people start dreaming about retirement as soon as they start working, many don’t start planning for it until too late. The sooner you consult with an investment advisor, the sooner you can start to grow your money so you have enough money to enjoy your later years. Retirement without travel and entertainment is not what many people have in mind, but without adequate savings, it will be the only lifestyle most can afford.