Did you know that it’s possible that you could live for another 30 years after you retire. How do you ensure that you will live out your golden years without having to worry about finances? Paula Walker (CA)SA, an advisory partner at Consolidated Wealth, says the earlier you start planning for your retirement, the better. “It’s a scary thought for any 22-year-old that their retirement may be almost as long as the number of years that they will be working!” Paula explains. ‘But whether you are just starting out or you are close to retirement, you need to have a plan for what comes next.” Paula says there are five steps that everyone should take to build a solid retirement plan. 1. Understand your time horizon Your current age and expected retirement age create the groundwork for an effective retirement plan. The longer the time between today and your retirement, the higher the level of risk your portfolio can withstand. If you’re young, you should probably have the majority of your retirement assets in higher risk investments. The older you are, the more your portfolio should start to focus on income and the preservation of capital. Your financial adviser will tailor this plan for you and review it regularly to keep you on track. 2. The Power of Compounding Saving is like an acorn. It starts out small but with time, it will turn into an oak tree. You may think saving a little extra in your 20s won’t mean…
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