In an ideal world, by the time a person is ready to retire,
he would have plenty of money stashed away in savings, a good retirement plan
in place, and a nice investment portfolio. Unfortunately, however, that’s just
not reality for the vast majority of people.
Many people, among realizing their needs and shortcomings
come retirement time, will start to make riskier investments in the hopes of
getting into a better financial position. Sadly, more often than not, this type
of behavior usually just makes financial problems worse, instead of better.
Investments are important, of course, but even the ones that
seem the most fool-proof can carry large
The absolute best strategy is, of course, to start saving
early in life and to make a few investments along the way. However, even
investments can be tied to a solid savings account. For example, many people
benefit greatly from compounding, i.e. Taking the money they have in their
retirement savings and re-investing it.
Compounding can take a while to really show a profit,
though, so if you’re starting your savings later than you would like, it can be
best to skip it and just focus on saving.
The bottom line is that if you’re not yet close to
retirement, start saving now. Once you’ve got a good savings going and can
afford to take a few risks here and there, make smart investments, often
utilizing funds from your own savings in the process. If you’re closer to
retirement, you may have “missed the boat” in terms of investing. When that’s
the case, just focus on the safe bet: saving
Hopefully, you still have time and can start saving and
investing now. But, if you did wait a little too late, don’t give up. Get a
good savings going, and you should probably still be okay!
No comments:
Post a Comment