Summerlin Benefits Consulting Q&AAnswer
Dec 26, 2024 - 09:46 AM
It’s crucial to start planning for retirement as early as possible because it gives you more time to save, earn compounding interest, and recover from market fluctuations. For individuals in their 40s, focusing on contributing to retirement plans allows for long-term growth. However, as you approach retirement, typically in your 60s, your financial strategy should shift to focus on growth while prioritizing safety and stability to protect your savings. This approach reduces the risk of market downturns affecting your retirement funds.
As you get closer to retirement, you also need to think about how to manage your portfolio risk, with guidelines like the "Rule of 100," which suggests reducing risk as you age. Another factor to consider is legacy planning, such as leaving funds for children or grandchildren. Additionally, having a solid financial plan can alleviate stress, allowing you to confidently transition into retirement.
Even if retirement feels far off, it’s never too early to start planning. Procrastination can lead to unnecessary stress, and getting professional help can make the process easier, ensuring you feel prepared for the future.
