Why Wealth Management is Essential to a Successful Retirement
Donald M. Fink has over 40 years’ experience in helping clients with investments and increasing their retirement portfolio.Wealth management is very important when focusing on your retirement. To make sure that you are allocating your funds correctly, seeing a financial advisor for expert advice and tips can always help.
When is the best time to start investing for my retirement?
If you start investing and managing your wealth at a young age, let’s say 25, you will see a much higher return because you will have invested over a longer period than if you were to start at 35. This allows your money to grow through compound investing. Compound investing is a method where your initial investment continues to grow along with the investment returns you have made. For example, if you invest $1000 at 1% compounded monthly, your investment grows to $1010, the next month your investment will return 1% of $1010 and continue to grow from there.
How should I allocate my funds?
The allocation of funds changes as you head later into your life from high risk investments that have short term fluctuations but long term gains like stocks and then change to low risk investments such as bonds. There are more than just 2 investments, however, at a younger age you can invest into these 2 methods with a much smaller initial investment as opposed to real estate.
Stocks or Bonds?
Generally, stocks are much more volatile than bonds and are also considered a high risk, high return investment. Bonds are the other hand are low risk but have a guaranteed return. Earlier in life you want to allocate funds so that you have a higher amount of investments in stocks and a much lower amount in bonds. As you go through life and retirement inches closer, you don’t have the luxury of time in case a stock falls so you invest more in bonds which provide more security for your money and a guaranteed return.
At the Advisory Co, we have an impeccable record of providing sound financial advice to our clients. Call us today at 702-869-1919 and let us get you setup with a retirement expert.