It can be very easy to think of retirement as a very distant point in time when you are in your 20s and 30s and just getting started in your career. This is also a time when people in Greenville, SC, have a lot of debt, including student loans, mortgage payments, car notes, and credit card payments.
People at this age may not see the value in starting to save for retirement. However, a Registered Financial Consultant like Matt Dixon can help people early in their careers to see the value of saving for the future.
Compound Interest Benefits
One of the reasons Matt Dixon recommends early investment for retirement is the value of compound interest. Compound interest is the interest you make on interest. Over time, as this grows, the savings can dramatically increase.
The earlier you start saving, the more money you earn. With the right types of investments, that income will not be taxable until you being to withdraw from the retirement account. Timing this to keep your tax bracket as low as possible is another savings opportunity.
Investment Risk and Reward
The younger you are when you start to work with Matt Dixon, the more opportunities you have for investing in higher risk and higher reward options. Generally, the closer to retirement age you are, the lower the risk with any investment to maximize the protection of your resources.
Meeting regularly in Greenville, SC, and discussing your plans, financial changes, and even changes in your retirement goals helps to meet your retirement date and saving levels.