The U.S. Department of Labor has determined that only 50 percent of Americans have calculated how much money they will need to retire, and almost a quarter of Americans who could use a plan such as a 401(k) did not take advantage of savings plans. These numbers show that many people are not investing in their future or even thinking that much about their financial health.
Why Financial Planning Is Important
Financial investment isn’t just about money; it’s about giving yourself peace of mind and the opportunity to pursue things that give you joy. When you plan for your future, you know that no matter what happens, you will be able to survive. You can’t always control issues like getting sick, job changes, or unexpected living costs, but you can make smart decisions that give you a foundation that can withstand the unpredictable nature of life.
Investment Doesn’t Just Mean Stocks
There’s so much more to financial planning than just the stock market. Many people equate investment with high-risk avenues like the stock market, but that’s not at all the case. The stock market can give high rewards and is wise in the right circumstances when you have the knowledge to make informed decisions, but the pre-retirement investment also means investing in avenues like bonds, savings, retirement funds, mutual funds, options, annuities, and so much more. In short, investing means putting money into your future. If you want to retire comfortably, you need to start putting money into your future.
Preretirement Investment Can Save You
Take advantage of a retirement savings plan if your employer offers one. Companies often add to the plan when you use it, and using these plans, such as a 401(k) plan, lowers your taxes, which on its own is a pretty big perk. Additionally, this plan gets interest, making your nest egg even bigger without you even having to do anything!
Retirement plans are one way to ensure a financial future, but it’s always essential to have several good investment avenues to boost your financial health. You need to determine how much money you will need to live in your later years, which should be around 70 to 90 percent of your current pre-retirement income to live at your usual standard of living.
Saving your money is one of the most important things you can do, and this goes beyond putting money into your retirement account. You want your retirement account to reflect what you need to live comfortably, while your savings should be a nice buffer in case you have unexpected expenses. This will also allow you to try new adventures, such as traveling.
Try other investment needs. One key to investment opportunities is to never invest what you cannot afford to lose. However, investing wisely through several means is a great way to boost your financial health and ensure that if you have massive changes in your life, you have backup financial support in place. Even just having money in the bank is an investment because it earns you interest, which can add up over the years, so you don’t have to take big risks to get big outcomes from investment!
Let Generations To Come, Inc. Help
Having solid investment plans now can help you build your financial future. We want to help you prepare for a happy and healthy retirement. You don’t want a financially unstable future, so let us help you prepare for the challenges and delights that are to come in your life. We’ll be happy to answer any questions you may have about financial planning and give you the information and guidance you need to make the best financial investments.