At this time of year, you probably have taxes on your mind. It's also the perfect time to review how well you're currently managing your finances to achieve your future goals. Accumulating enough money for a comfortable retirement means creating an investing strategy based on your objectives, time frame and risk tolerance.
Catching the worm
No matter what your goals are, the earlier you begin investing, the more likely you are to reach them. Time and the effects of compounding — the continual reinvestment of investment earnings — have the potential to turn even a small investment into a substantial sum. The early years of investing can be critical. Contributing to an employer's retirement plan or individual retirement arrangement (IRA) as soon as you're eligible can help you reap the benefits of time.
Plan ahead
Even if retirement is several years away, planning for the lifestyle you hope to enjoy once you do retire is essential. You may want to travel extensively or pursue a favorite hobby. You may even want to turn a hobby into a business. Or you may want to sell your home and move to another state — or another country. But whatever you're envisioning for your retirement, taking the appropriate steps now offers your best chance of having enough money in the future.
When you're choosing investments for your portfolio, you should keep potential inflation in mind. Over the long term, even low inflation may outpace the buying power of a portfolio that includes only conservative investments. Also remember that health care costs tend to rise in retirement and could consume a sizable portion of your budget, so plan accordingly.
Don't underestimate your needs
Because no one can be sure how many years they will spend in retirement, your best course of action may be to plan for a long retirement. Investing as much as possible for as long as possible can help you accomplish your goals.
FINRA Reference #FR2012-1030-0150/E 02/04/13
Catching the worm
No matter what your goals are, the earlier you begin investing, the more likely you are to reach them. Time and the effects of compounding — the continual reinvestment of investment earnings — have the potential to turn even a small investment into a substantial sum. The early years of investing can be critical. Contributing to an employer's retirement plan or individual retirement arrangement (IRA) as soon as you're eligible can help you reap the benefits of time.
Plan ahead
Even if retirement is several years away, planning for the lifestyle you hope to enjoy once you do retire is essential. You may want to travel extensively or pursue a favorite hobby. You may even want to turn a hobby into a business. Or you may want to sell your home and move to another state — or another country. But whatever you're envisioning for your retirement, taking the appropriate steps now offers your best chance of having enough money in the future.
When you're choosing investments for your portfolio, you should keep potential inflation in mind. Over the long term, even low inflation may outpace the buying power of a portfolio that includes only conservative investments. Also remember that health care costs tend to rise in retirement and could consume a sizable portion of your budget, so plan accordingly.
Don't underestimate your needs
Because no one can be sure how many years they will spend in retirement, your best course of action may be to plan for a long retirement. Investing as much as possible for as long as possible can help you accomplish your goals.
FINRA Reference #FR2012-1030-0150/E 02/04/13
Northbeam Financial, Inc. and LTM Publishing, Inc. are unrelated.
This is an advertisement prepared by LTM Publishing, Inc. for the use of the sender. Articles are not written or produced by the named representative. The advertisement provided is not intended as legal or tax advice and may not be relied on for purposes of avoiding federal tax penalties. All individuals, including those involved in the estate planning process, are advised to meet with their tax and legal professionals. The individual sponsoring this newsletter will work with your tax and legal advisors to help select appropriate product solutions. We do not endorse or guarantee the content or services of any website mentioned in this newsletter. We encourage you to review the privacy policy of each website you visit. Limitations, restrictions and other rules and regulations apply to many of the financial and insurance products and concepts presented in this newsletter, and they may differ according to individual situations. The publisher does not assume liability for financial decisions based on the newsletter's contents. Great care has been taken to ensure the accuracy of the newsletter copy at press time; however, markets and tax information can change suddenly. Whole or partial reproduction of Let's Talk Money® without the written permission of the publisher is forbidden. ©LTM Publishing, Inc., 2013.
We Value Your Input... Your feedback is very important to us. If you have any questions about any of the subjects covered here, or suggestions for future issues, please don't hesitate to call. It's always a pleasure to hear from you.
This is an advertisement prepared by LTM Publishing, Inc. for the use of the sender. Articles are not written or produced by the named representative. The advertisement provided is not intended as legal or tax advice and may not be relied on for purposes of avoiding federal tax penalties. All individuals, including those involved in the estate planning process, are advised to meet with their tax and legal professionals. The individual sponsoring this newsletter will work with your tax and legal advisors to help select appropriate product solutions. We do not endorse or guarantee the content or services of any website mentioned in this newsletter. We encourage you to review the privacy policy of each website you visit. Limitations, restrictions and other rules and regulations apply to many of the financial and insurance products and concepts presented in this newsletter, and they may differ according to individual situations. The publisher does not assume liability for financial decisions based on the newsletter's contents. Great care has been taken to ensure the accuracy of the newsletter copy at press time; however, markets and tax information can change suddenly. Whole or partial reproduction of Let's Talk Money® without the written permission of the publisher is forbidden. ©LTM Publishing, Inc., 2013.
We Value Your Input... Your feedback is very important to us. If you have any questions about any of the subjects covered here, or suggestions for future issues, please don't hesitate to call. It's always a pleasure to hear from you.