Specialists like Matt Dixon, a Registered Financial Consultant in Greenville, SC, take the time to explain the central concepts of retirement planning to clients. This educational component is a benefit in providing the client with the information needed to make the right choices for their long-term financial wellbeing.
One of the terms used by financial advisors is time horizon. Think of this as the time from your current age to when you want to retire. This is critical to discuss with Matt Dixon as everyone in Greenville, SC, has their own retirement goals.
A Longer Time Horizon
The younger you are when you begin retirement planning, the longer your time horizon to retirement. This is true even if you plan to retire early. It is also possible for someone in their 40s or 50s to have an extended retirement time horizon if they plan to work into their 60s or 70s.
Matt Dixon is able to use the information from the time horizon to structure the most effective investment strategy to reach your retirement goals.
The Benefits of a Longer Time Horizon
With any type of investment, there is always a risk factor to retirement savings. The higher the risk in most types of assets, the higher the potential for rewards or increased gains. Early in life, higher risk investments can be an effective strategy to build your portfolio quickly.
As people get older and closer to retirement, the investment can change to a low or moderate risk, protecting the investment and ensuring the required funds are ready when you plan to retire.