The First Step in Building Wealth is Offensive
It starts with investing your money as soon as you can so you have plenty of time to let it grow before needing it for retirement income. You want to invest in products that are aligned with your risk appetite and short and long-term financial goals.
In your 20’s, it is all about getting started with either an employer savings plan like a 401(k) or an IRA account if you do not have an employer sponsored plan. It is also wise to not incur debt, if you have student loans put a plan in place to pay it down as soon as possible. Your 30’s is about doubling down, to maximize income while starting to plan for marriage, children — consider saving for their college tuition through a 529 plan — buying a house and other goals you may have. Your 40’s and 50’s are considered peak earnings years where the focus should be in funneling as much money as you can into your retirement savings.
Step Two: Build a Defensive Strategy to That Aims to Protect Your Assets
It can be said that in sports that defense wins championships. In planning for retirement and protecting your assets, start with eliminating the main opponent — debt. Planning for the unexpected is next. There are no guarantees in life and not insuring your assets against life altering events is a big mistake. At this stage, consider term life, disability insurance, long-term care, estate planning, healthcare options as well as property, casualty and liability insurance.
Bottom line, it is hard to win without a solid game plan that includes a strong offensive and defensive strategy combined with good coaching to stay on track in meeting your goals.
This material was produced for Damefender Financial Partners use. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.