Is 30 too young to be saving for your retirement?
Retirement planning in your 30s is admittedly not something most early 30-somethings think about. But as we move forward and begin to settle down it’s natural to start thinking beyond the here and now.
Your 30s puts you in a unique position from a retirement planning standpoint. By the time you've reached 35, most of us know what we want out of life: where we want to live and our career goals. After working for more than ten years, shockingly retirement isn’t too far away.
Wealth accumulation (retirement planning for Gen X and Y)
While retirement planning might not catch the attention of a 30 something, wealth accumulation certainly does. And starting your retirement plan with a wealth accumulation strategy is in essence kick starting your retirement plan.
A wealth accumulation plan involves structured planning to ensure you have the best opportunity to accumulate wealth over the long term (and well into retirement).
Wealth accumulation plans can include various strategies such as:
· Regular savings plans
· Direct shares
· Salary sacrifice arrangements
· Personal insurances
· Investment model portfolios
· Equity from property
The power in compounding returns
You don’t need to be a mathematician to know there is power in compounding. The more time you allow, the more benefit you will extract from compounding returns.
Young people, no matter their tax bracket, have a significant opportunity to grow their wealth thanks to the power of compound interest.
The earlier we get our finances under control, the more time we have to build and the more certain you will be in achieving financial success. The strategy that suits you will depend on a number of factors regarding your personal circumstances and objectives. All of this should be considered prior to committing to any wealth building strategy.
The role of your financial adviser
This is where meeting with your financial adviser is invaluable. Your financial adviser will prepare a strategy that helps you achieve the goals and objectives important to you.
The world of finance can be complicated, with significant options, tax implications and various levels of risk. Simple mistakes can lead to damaging and complex consequences.
A good financial adviser breaks down the complications and presents you with simple, logical and relevant solutions.
Want to get started on a wealth creation strategy?
The advice provided on this website is general advice only. It has been prepared without taking into account your objectives, financial situation or needs. Before acting on this advice you should consider the appropriateness of the advice, having regard to your own objectives, financial situation and needs.