Under the best circumstances, it is challenging to make enough savings for your retirement, and this is why you must avoid mistakes during the savings process. Mistakes such as wrong selection and allocation of assets, as well as selecting investments with high costs, are the common mistakes people make when they save for retirement. Making this mistake will give you less return in the future.
Here are the common mistakes that can make your retirement goals challenging to achieve:
If you want to live a financially stable life in your later years, the common mistake you can make is delaying starting your savings till your old age. This mistake could cost you a fortune, and it may be difficult to correct. You have influence over the allocation of your assets and the type of investment strategies, but you cannot shift the time to begin your investment to earlier.Leaving a short period before you start keeping some money is a big mistake, as this will later affect the total amount of money you will get when you retire. The reason is that such a delay will decrease your compound interest, and this compound interest will give you more wealth.Compounding will give you more money because you will get a return that can be reinvested when you invest. When you reinvest your return, you will get another return, and your money increases exponentially. The effect of compound interest on your money is similar to how a snowball adds more snow when rolling down a cliff. When you want to invest, you can start small, and your returns will grow your balance over time. Besides, you must start saving now if you want your money to give you more money.
Delaying your retirement savings will cost you some money.
Waiting for a short period before starting your savings is a costly mistake, and it will cost you some money. For example, suppose you want to have an investment of $1 million at age 65. In that case, your starting age will determine the amount you must invest annually if you’re going to meet your goal. Assuming an average annual return of 8%, delaying your investment for five years means that you must invest an additional $1,000 to your yearly amount if you want to hit your target. Delaying it for a decade will double the annual amount you need to save. To meet your $1 million target, your yearly savings will be $2,396 if you start saving at age 20. But delaying your investment till when you are age 45 will increase your annual investment to $20,000. When you start at age 20, the annual amount you need to save is less, and it’s more comfortable than if you start at age 45.
Start your retirement savings now.
Suppose you are in your 30s or 40s; you need to work harder if you want to save a million dollars before retirement. Although starting your investments at age 20 will give you less annual savings and more time, you can also start investing now. If you start saving now, your compound interest will work for you and give you more returns. If you want to be financially secure after retirement, you need to keep your investment snowball rolling now.
Contact Information:
Email: [email protected]
Phone: 3604642979
Bio:
After entering the financial services industry in 1994, it was a desire to guide people towards their financial independence that drove Aaron to start Steele Capital Management in 2013. Armed with an extensive background in financial planning and commercial banking coupled with a sincere passion for helping people, Aaron has the expertise and affinity for serving the unique needs of those in transition. Clients benefit from his objective financial solutions and education aligned solely withhelping them pursue the most comfortable financial life possible.Born in Olympia, Washington, Aaron spent much of his childhood in Denver, Colorado. An area outside of Phoenix, Arizona, known as the East Valley, occupies a special place in Aaron’s heart. It is where he graduated from Arizona State University with a Bachelor of Science degree in Business Administration, started a family, and advanced his professional career.Having now returned to his hometown of Olympia, and with the days of coaching his sons football and baseball teams behind him, he now has time to pursue his civic passions. Aaron is proud to serve on the Board of Regents Leadership for Thurston County as the Secretary and Treasurer for the Morningside area. His past affiliations include the West Olympia Rotary and has served on various committees for organizations throughout his community.Aaron and his beautiful wife, Holly, a Registered Nurse, consider their greatest accomplishment having raised Thomas and Tate, their two intelligent and motivated sons. Their oldest son Tate is following in his father’s entrepreneurial footsteps and currently attends the Carson College of Business at Washington State University. Their beloved youngest son, Thomas, is a student at Olympia High School.Focused on helping veterans and their families navigate the maze of long-term care solutions, Aaron specializes in customized strategies to avoid the financial crisis that care related expenses can create. Experience has shown him that many seniors are not prepared for the economic transition that takes place as they reach an advanced age.With support from the American Academy of Benefit Planners – an organization with expertise and resources on the intricacies of government benefits – he helps clients close the gap between the cost of care and their income while protecting their assets from depletion.Aaron can help you and your family to create, preserve and protect your legacy.That’s making a difference.
Disclosure:
Disclosure:Investment advisory services are offered through BWM Advisory, LLC (BWM). BWM is registered as an Investment Advisor located in Scottsdale, Arizona, and only conducts business in states where it is properly licensed, notice filed, or is excluded from notice filing requirements. BWM does not accept or take responsibility for acting on time-sensitive instructions sent by email or other electronic means. Content shared or published through this medium is only intended for an audience in the States the Advisor is licensed in. If you are not the intended recipient, you are hereby notified that any dissemination, distribution, or copy of this transmission is strictly prohibited. If you receive this communication in error, please immediately notify the sender. The information included should not be considered investment advice. There are risks involved with investing which may include market fluctuation and possible loss of principal value. Carefully consider the risks and possible consequences involved prior to making an investment decision.Confidential Notice and Disclosure: Electronic mail sent over the internet is not secure and could be intercepted by a third party. For your protection, avoid sending confidential identifying information, such as account and social security numbers. Further, do not send time-sensitive, action-oriented messages, such as transaction orders, fund transfer instructions, or check stop payments, as it is our policy not to accept such items electronically. All e-mail sent to or from this address will be received or otherwise recorded by the sender’s corporate e-mail system and is subject to archival, monitoring or review by, and/or disclosure to, someone other than the recipient as permitted and required by the Securities and Exchange Commission. Please contact your advisor if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services. Additionally, if you change your address or fail to receive account statements from your account custodian, please contact our office at [email protected] or 800-779-4183.
