You’ve probably heard it said that the best time to start saving for retirement is when you are young. Compound interest can work hard for your money, and your earnings potential is at its highest while you are still relatively new to the workforce. Even if you don’t have much in savings now, there’s still a lot that you can do early in your career to help ensure a comfortable retirement later on down the road. Your financial investment consultant in Orange County can help you avoid these mistakes.
Not Starting Early
One of the most common mistakes people make when investing is not starting early enough. If you’re just starting your career or have yet to begin saving for retirement, now is the time to talk to a retirement financial planner.
The earlier you start saving for retirement and investing your money wisely, the more time your investments will have to grow and compound over time. By investing at age 30 instead of waiting until age 40 or 50, you could potentially accumulate a much larger nest egg for yourself by age 65 than someone who waited until later in life before putting money away into an IRA or 401(k).
Not Understanding Your Investments
The first step to investing is understanding your investments. Many people aren’t aware of just how critical it is. The second step is understanding the risk and return on your investments. Your financial investment consultant in Orange County will explain these factors. The third step involves understanding all fees associated with each financial product or service.
Making Inaccurate Projections
If you’re unsure what your future expenses will be, it’s easy for the numbers in your budget to become inaccurate. If you don’t know how much health insurance premiums will increase or if new technology will make it possible for your kids to attend college without taking out loans, it can be challenging to project how much money will be needed accurately. Inaccurate projections can lead to over- or under-saving, which could cause financial problems down the road.
If you’re looking for a financial investment consultant in Orange County, visit the Cooke Wealth Management, LLC website.