Retirement Planning Throughout Life

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Retirement planning is a complex process requiring as much support and time as possible to reach the desired end. Retirement planning at all ages is important — the more time put into the process, the less investment is necessary to work towards your goals. A variety of strategies exist to help people to do this, but those strategies and methods change over time as well.

Making key decisions about investment strategies and plans is something to do with a financial advisor who provides customized support. Here are some areas to consider at any stage of life.

Starting Young

Time can be a great wealth builder. Compounding interest may allow for investments to grow faster as the money builds on itself over and over again. For those who are starting young with investments, this can provide a key advantage. It takes cash invested into accounts to make a bigger impact when a person is ready to retire. Starting young may reduce the need to make constant large investments, but being consistent can be a valuable tool here.

Early Career and Investments

Men and women at a prime time in their life can begin investing in their retirement early on. Establishing retirement goals now helps ensure there's enough time for compounding interest to build. Not only should younger investors put money aside now, but they should begin to make lifestyle changes to reduce debt-building.

Mid-Career

Men and women who are more established in their careers may use this time to get a bit more aggressive with retirement planning strategies. Many at this age are business owners who are working to establish a legacy to leave behind to their children as they reach adulthood. It is also a time when significant lifestyle changes occur due to children moving out of the home. At this point, having a retirement goal is essential, and funding strategies should include increasing contributions and working to minimize debt.

Late Career

For those who are preparing for retirement, there is a unique period in which managing financial goals becomes almost essential. This is the peak time to make changes to investment strategies to move away from more aggressive and high-risk methods towards stable growth opportunities. This does not mean that it is time to back down from investment. Much the opposite, it becomes necessary to invest more in stable and lower-risk methods to establish more safety overall because there's less time to recoup any losses that occur. It's also time to consider Social Security allotments.

After Retirement

Once a person leaves his or her job, it's time to consider a new strategy for wealth building. This may be the time to sell off a company as business owners to add to retirement funding. Now is the time to work with a financial advisor to determine when it is best to start pulling from various retirement investment vehicles such as retirement accounts, pensions and other resources.

Done well and consistently, retirement planning at all stages of life doesn't have to be aggressive or worrisome. The key here is to start young and work with a financial advisor who can help you get the appropriate strategies in place for the future.

Talk to a Financial Advisor

Financial advisors with BECU Investment Services are here to help. Our team will take the time to get to know you, understand your goals and plan and implement a financial strategy that's appropriate for you. Set up a complimentary consultation or call 206-439-5720.