How to Make Wise Financial Decisions Now For When You Retire
There are multiple ways to approach retirement planning. However, from the experience of our Dallas financial advisors, retirement planning is an activity that most people neglect doing. Some people believe they don’t make enough money to start saving for the future. Some believe that it is still too early to start thinking about their retiree years and would much rather focus on the present. But most just don’t know how or where to begin. In this article, our Dallas retirement financial advisors will discuss how you can begin your Fort Worth financial planning.
Live Below Your Means
“Living below your means” has been getting a bad rep recently as it is being portrayed unfairly as living miserably by skimping on basic comforts like takeout coffee and restaurant dinners. Our Dallas financial planning team could not disagree more. “Living below your means” is making sense of the reality of how much you earn, how much you spend, and how these two things balance out. One takeout coffee or a restaurant dinner a day won’t make you poor if at the end of the month you still have savings that align with your goals. One takeout coffee or a restaurant dinner a day will make you poor if you had to borrow money for it. We recommend that you review your expenses. When you do, you will be surprised that you can maintain your lifestyle and still have savings.
Start Saving Early
As you discover how much you can save, what can you do with this extra money? Invest it! Make your money work for you now, while time is still on your side. By doing so, you get to harness what Albert Einstein referred to as the eighth wonder of the world, Compounding Interest. Compound interest is the interest that you earn on previously earned interest. Let’s say your $100 earns 10% interest annually. On its first year, it becomes $110 and on the second year, your investment becomes $121. The ‘extra’ is the compounded interest. As our veteran Dallas retirement planning team has seen over the years, the old investment adage “it’s not about timing the market, but about time in the market” holds true.
Diversify Your Portfolio With Our Dallas Financial Advisors
We end with what is probably the most famous saying about investing, “Don’t put all your eggs in one basket”. By diversifying your portfolio, we limit the risk exposure of our investment. One blue chip company may fail, but a set of blue chip companies from different sectors failing is highly improbable.
Start Planning for Your Future Now
Retirement is a matter of when and not if. Regardless of where you are in your retirement planning journey, our Fort Worth Retirement planning experts can assist you. Contact us now to schedule an appointment and let Retire Guides make your retirement dreams a reality.