Setting yourself up for success in retirement in your 30’s and 40's.
Here are 5 best practices we’ve found to set yourself up for success in retirement during your 30’s and 40’s:
1. Start now
Start. By putting a little money aside now you can take advantage of the time value of money. he time value of money (TVM) is the idea that money available at the present time is worth more than the same amount in the future due to its potential earning capacity. This core principle of finance holds that, provided money can earn interest, any amount of money is worth more the sooner it is received.
2. Invest in education
Financial education is one of the great bargains in life: it costs little, risks nothing, and returns huge rewards. It’s the best investment you can make. The pros outweigh the cons here. Period.
3. Create and actual investment plan
In order to succeed in trading or investing you need a plan, in other words an investing plan. This is a set of rules and guidelines that are designed to hold you, the investor accountable to yourself and your financial well-being. A good investment plan comes down to 3 factors:
- Sound investment strategy or strategies
- Disciplined approach to investing (keeping your emotions in check)
- The ability to repeat your investment process over and over
4. Self-Directed Investing
No one has your best interests at heart more than you. If you’re working this hard to earn a living, why not work as hard at protecting and growing that capital? Being a self-directed investor is wise on so many levels. 1) You have full control. 2) You save on investment advisory fees that can eat away at your profits. 3) Accountability.
5. Diversify
Diversifying is not owning AAPL stock, FB stock and Google. Instead, learn how to invest across all the 4 major markets: stocks, options, futures and FX. This is the true way to generate multiple income streams while mitigating your risk. The same holds true in your retirement accounts.
Eager to set yourself up for success in retirement in your 30’s and 40’s.
Have more specific questions? Contact us.
or
