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Retirement Planning: Why it’s Important to Start Early with a Financial Planner

Written by Lana Berkowitz 
on 27 Apr, 2023

Retirement planning is an essential aspect of financial management that many people neglect until later in life. However, the earlier you start, the better prepared you will be for retirement. With the help of a financial advisor, you can make informed decisions that will ensure you have the financial stability you need in your retirement years.

Why start planning early?

The sooner you start planning for retirement, the more time you have to save and invest your money. Starting early means, you can benefit from compound interest, which allows your money to grow over time. It also means you have a longer time horizon to invest in potentially higher-risk, higher-return investments, which can help increase your overall retirement savings.

Additionally, starting early gives you more time to adjust your retirement plan as needed. Life is unpredictably unpredictable, and situations can shift over time. Starting early gives you the flexibility to adjust your plan to accommodate any changes in your life, such as a job loss or health issues.

The benefits of working with a financial planner

Working with a financial planner can provide numerous benefits when managing your finances, especially when planning for retirement. Here are some of the key advantages of working with a financial planner:

● Personalised advice: A financial planner can advise based on your unique financialsituation,          goals, and risk tolerance. They can help you develop a tailored retirement plan that fits your needs and preferences.
● Expertise and experience: Financial planners have the knowledge and experience to guide you through the complexities of retirement planning, including tax implications, investment strategies, and retirement account options.
● Objective perspective: A financial planner can provide an objective perspective on your finances, helping you make informed decisions without being influenced by emotions or biases.
● Accountability: Working with a financial planner can provide accountability and motivation to stick to your retirement savings goals. Your planner can monitor your progress, provide feedback, and adjust as needed to keep you on track.
● Long-term planning: Retirement planning requires a long-term perspective, and a financial planner can help you stay focused on your goals over time. They can also help you anticipate potential roadblocks or challenges that may arise along the way
● Peace of mind: Working with a financial planner can provide peace of mind regarding your finances. Knowing that you have a solid retirement plan can alleviate stress and anxiety and allow you to enjoy your retirement years confidently.

Overall, working with a financial planner can be a smart investment in your financial future, helping you achieve your retirement goals and ensure a comfortable and secure retirement.

Starting the retirement planning process

Starting the retirement planning process can seem overwhelming, but it’s important to take the first step towards securing your financial future. Here are some pointers to get you started:
● Assess your current financial situation: Evaluate your income, expenses, assets, and debts. This will provide you with a comprehensive picture of your present financial status.
● Set a retirement savings goal: Once you have a clear picture of your current finances, set a realistic retirement savings goal. This should consider your retirement goals, such as when you want to retire, how much income you need, and how long you expect to live.
● Develop a retirement plan: With your savings goal in mind, develop a retirement plan considering potential risks, such as inflation and market volatility. Your plan should also consider potential sources of retirement income, such as Social Security and pensions.
● Monitor your progress: Once your plan is in place, it’s important to monitor and adjust it as needed regularly. This will ensure you stay on track towards achieving your retirement savings goal.
● Work with a financial planner: Consider working with a financial planner to develop a personalised retirement plan that meets your specific needs and goals. A financial planner can provide expert advice on investing, tax strategies, and retirement accounts.
Remember, the key to successful retirement planning is to start early and stay committed to your savings goals. By taking these steps, you can ensure you have the financial security you need to enjoy a comfortable retirement.

Conclusion

Retirement planning is a crucial aspect of financial management that should be addressed. Starting early with the help of a financial planner can provide many benefits, including the ability to benefit from compound interest, flexibility to adjust your plan as needed, and expert advice on investing and tax strategies.

If you still need to start planning for retirement, now is the time to start. Take the first step by assessing your current financial situation, setting a retirement savings goal, and working with a financial planner to develop a personalised retirement plan. With early planning and expert guidance, you can enjoy a comfortable retirement and financial security in your golden years.

Lana Berkowitz

Practice Manager I have really enjoyed joining the SFS team and getting to know the key stakeholders and clients. This is an organization that really enjoys the personal touch and fosters a sense of individual accomplishment while still working as a tight-knit team.