Time flies….your financial future comes along fast

You’ve heard over and over about Retirement Accounts.  IRA, Roth, 401K, 403B, etc. Although your retirement years may seem aeons away, don’t neglect to open it as early as you can. And if you’re older, still open it.  Speak to someone in the HR department of your company to see if the company is set up for you to withdraw money automatically from your paycheck.  This is the best way to do this.  The money you don’t see, you won’t miss. Or if you work in a smaller business with no Retirement Plans available, you, yourself, set money aside each paycheck, putting it in a savings account until you can speak to a Financial Adviser.

Interview some reputable Financial Advisers.  Ask if they’re a Fiduciary (a person who acts in your best interest)… some are not a Fiduciary but rather an Adviser who gets a commission for a product (usually insurance) they sell to you.  Ask questions, understand answers, be informed before you make a final choice.  Your Adviser can be changed, and certainly if you find they aren’t working with your money the way you think they should or are comfortable with.  You want to know where your money is allocated and why it is allocated there.  Ask questions.  It’s your money.  You’re the boss, and if you don’t get or don’t understand the answers, change your Adviser.

People usually retire in mid to late 60’s.  So starting to save for it in your 20’s gives you 40 or so years for growth in your account(s).  You want to diversify your money.  The market can be very volatile, and if you have not spread out your money, and the market goes down in the area where your money is allocated, you now have less money in it.  No one has a crystal ball.  That’s why it’s best to diversify.  A good Adviser will guide you and will recalculate your investments accordingly to re-balance your account(s).  This is imperative.

As you get older, you may want to be a little more conservative.  You should meet with your Adviser at least annually, and speak with him/her with any questions or concerns in between.

Social Security has been around now for decades.  A deduction is taken from your paycheck, is put in the Social Security System Account. People retire and are eligible to receive Social Security Benefits each month, although it was never meant as an income that would sustain you fully.  Over the decades, the money there was allocated differently, and although millions receive benefits, the Social Security System will become insolvent in about 15 years, unless Congress fixes it.  In other words, don’t depend on it as an income for your retirement years.  Depend on only yourself.  So save, save, save now.

Whichever type of Retirement Account vehicle you choose, always try to put the maximum allowable amount in each year.  You will not regret it.