The expression carpe diem is motivation for everyone to make the most of each present moment without giving too much thought to the future or consequences. While seizing the day is inspirational, it can lead to frivolous activity that leaves individuals in a bad place financially. In truth, one ought to make the most of every day with the responsibility to address tomorrow should it come; planning for the future can never be premature in this respect.
Poor Retirement Planning
Every day there are around 10,000 baby boomers that are finally retiring after a life of hard work. According to statistics, it is estimated that one out of every five individuals nearing retirement age have no money saved for their retirement. A recent survey found that nearly half of young adults between the ages of 18 and 29 haven’t even given a thought about retirement planning. Investing your finances is a great way to plan for retirement but only if the action is taken early enough to allow for financial growth.
The Impact of the Economy on Savings
A recent survey found that a majority of people use a contribution plan such as a 401k as the most common savings vehicle. Overall, around 70% of 401k and individual retirement account assets are held by the richest 20% of Americans — logically speaking, it sounds like a 401k is the best route for those looking to accumulate wealth. In reality however, around 75% of 401k account holders actually have account balances that are less than the widely cited average of $60,000. People who planned on retiring with their 401k may not be able to do so successfully in light of these facts; for this reason the best way to secure your future through investments is to diversify one’s financial portfolio.
Financial Growth By Diversifying Your Investment Portfolio
On the whole, a contribution plan is a solid investment strategy yet it should not be the sole investment factor. Partnering with local financial planners is a great way to gauge the market and determine where your money will do well. Many individuals have made their fortune through informed stock trading; by the same token many more individuals have failed in this manner. Financial growth takes time and planning to come to fruition, the more research one does the better position they find themselves in to make money. Contact a wealth management service in your area to schedule a consultation so you can start preparing for the future one day at a time.