Saving for retirement is, in many respects, a lifelong project. It requires clear goals, expert advice, and, most importantly, an early start. While effective retirement planning is possible in your later years, the sooner you develop a plan and begin following it, the more comfortable your senior years will be. Wilson, Rea, Beckel & Associates CPAs LLC, a financial services provider in Pagosa Springs, CO, urges all of their clients to begin forming a strategy for their future as soon as possible.

Why is early retirement so important? Here are just a few reasons:

• Compound Interest Depends on Time: Many people don't bother investing because they think they can't afford to save enough to make the process worthwhile. Fortunately, the power of compound interest can turn relatively modest contributions into substantial sums over time. As interest gains and personal contributions are added to the principle amount, that number bears even more interest, resulting in a snowball effect. In other words, compound interest-bearing investments grow more rapidly the longer they mature.
• More Tolerance for High-Risk Investments: Higher-risk investments, like stocks in startup companies and new technologies, tend to be the most lucrative. However, volatile investments are more likely to lose value over time. If you begin retirement planning early, you'll have more tolerance to take a chance on a high-risk investment, since you have time to recover if you lose money.
• Take Advantage of Employer Contributions: Many employers offer matching funds for their 401(k) contributions. If you're not contributing the maximum allowable amount under the law, you're forgoing free money that could be accumulating over time to help you achieve your future financial goals.

For more than 16 years, Wilson, Rea, Beckel & Associates CPAs LLC has provided detailed investment advice for individuals throughout the area. Visit the website to learn more about their diverse range of services, or call (970) 731-1040 to begin retirement planning today.