One of the first questions many people in Greenville, SC, ask Matt Dixon, a Registered Financial Consultant, is if they can retire at fifty. The answer to that question is often complex and complicated. It depends a lot on when you start saving for retirement and how much you can save on an annual basis.
Start Early and Retire Early
Generally, Matt Dixon can provide the good news that starting to save early allows you to have the option to retire early. Saving for retirement should start as soon as you have an income, even if you also have student loans, mortgage payments on a Greenville, SC, home, or are trying to save to put children through college.
It is a good idea to use an employer 401(k) plan, particularly with an employer match, to both save money as well as lower your current taxes. Tax savings is a factor many people do not consider, but it is a specialization of Matt Dixon.
Reducing taxes provides more money to put into retirement savings. This also provides the individual with the benefits of compound interest, which can dramatically add to retirement savings over a few decades.
Investing earlier in life also provides the opportunity to invest in higher-risk investments, which are also hirer reward investments. As the investor gets closer to retirement, the portfolio can be adjusted to more moderate to low risk investments. This is effective in limiting any risk of loss of the investment, particularly if markets are volatile.