Even in a completely conservative investing strategy, if you start early enough you could have plenty to retire on when it is time. There are many stories about people that have put away money at a snail’s pace in wise areas so that at the end of their lifetime not only did they have enough to live on and not be a burden but they were also able to pass on a substantial amount of money to their loved ones. If you are looking at financial planning in MA and are not sure how to invest, talk with a professional about a plan that works best for you.
Perhaps when you are younger you have heard that the strategy is to take more risk with your investment dollars but at the same time, you are not making that much when you are younger. Of course there is also an analogy that works well in which every $5 you can save today will earn you more than $20 you can invest next week. With the rate of inflation take advantage of the strategy of investing early with as much as you can safely afford.
A good rule to remember in investing is to pay yourself first. This does not mean however, that you go out and buy a bunch of luxury items. What this means is that if you have any revolving debt you need to pay that off before you start to invest. Revolving debt such as your credit cards would constitute a debt that probably has a high credit rate attached to it or any debt that you can not write off on your taxes at the end of the year. By paying off your bills first that is the best return for your money.
What would be the point in saving with a strategy for financial planning in MA making a conservative 6% a year interest when you have a debt that carries 20% interest per year? Your money would serve you best paying down any debt that you have a minimum balance to pay every month. This is a simple investment strategy that once adhered to you can then make wise decisions on retirement accounts that are tax deferred and even money market accounts that you can access in an emergency but still yield more return than a savings account at a local financial institution.
