Retirement/estate planning is a lot like planting trees. Doing so demands considerable foresight, and it won’t reap benefits for years to come. As such, it’s easy to put off retirement planning for other tasks that pay off sooner. If you take a proactive approach, though, you can ensure your financial future—and that of those who depend on you. Here’s a handy guide to when—and how—you should plan for retirement. 

When to Start Planning for Retirement 

There’s a Chinese proverb that states the best time to plant a tree was 20 years ago; the second-best time is now. The same applies to retirement and estate planning. The sooner you start making arrangements, the more security you’ll have.

At the same time, though, it’s never too late to start retirement/estate planning. After all, putting aside some money is better than putting aside none. It will be far easier, however, to build up a sizable nest egg if you start early. 

If you determine you’ll need $2 million to retire comfortably, for example, you’ll need to put aside a much smaller portion of each paycheck if you start saving at 25 than at 45. Likewise, the more risk you can take when it comes to your portfolio.

Whereas a 55-year-old may only want to invest in certificates of deposit, money market mutual funds, and fixed annuities to ensure the funds will be there when they need them, a 35-year-old has the freedom to buy individual stocks if they so choose. 

How to Plan for Retirement 

After evaluating your current situation and long-term goals, a retirement/estate planning expert can help you devise a strategy for proceeding. In addition to saving a portion of each paycheck, for example, you may be advised to put any windfalls—tax returns, annual bonuses, and inheritances—toward your savings goals.

A seasoned CPA will also be able to explain the best vehicles for achieving your goals. Finally, you may be able to open an investment account through your employer, as well. 

For help devising an ambitious but still manageable retirement plan, turn to Wilson, Rea, Beckel & Associates, CPAs, LLC. Serving individuals and businesses throughout Pagosa Springs, CO, this firm is proud to help clients prepare for all eventualities. Their retirement/estate planning specialists are well-versed in sheltering assets, implementing business succession strategies, and estimating total insurance needs. To explore all the services they provide, visit their website. To schedule a consultation, call (970) 731-1040.