Retirement planning is a complex process requiring as much support and time as possible to reach the desired end. Retirement planning at all ages is important – the more time put into the process, the less investment is necessary to work towards your goals. A variety of strategies exist to help people to do this, but those strategies and methods change over time as well.

Making key decisions about investment strategies and plans is something to do with a financial professional who provides customized support. Here are some areas to consider at any stage of life.

Starting Young

Time can be a great wealth builder. Compounding interest1 may allow for investments to grow faster as the money builds on itself over and over again. For those who are starting young with investments, this can provide a key advantage. It takes cash invested into accounts to make a bigger impact when a person is ready to retire. Starting young may reduce the need to make constant large investments, but being consistent can be a valuable tool here.

Millennial and Investments

A key group of men and women at a prime time in their life to begin retirement investment is the millennial generation2. Establishing retirement goals now helps ensure there’s enough time for compounding interest to build. Not only should millennial investors put money aside now, but they should begin to make lifestyle changes to reduce debt-building.

Gen Xers

When it comes to Gen Xers, who are men and women in their 40s-50s, it may be time to get a bit more aggressive with retirement planning strategies. Many at this age are business owners who are working to establish a legacy to leave behind to their children as they reach adulthood. It is also a time when significant lifestyle changes occur due to children moving out of the home. At this point, having a retirement goal is essential, and funding strategies should include increasing contributions and working to minimize debt.

After 50s

For those who are between 50 years of age and retirement, there is a unique period in which managing financial goals becomes almost essential. This is the peak time to make changes to investment strategies to move away from more aggressive and high-risk methods towards stable growth opportunities. This does not mean that it is time to back down from investment. Much the opposite, it becomes necessary

to invest more in stable and lower risk methods to establish more safety overall because there’s less time to recoup any losses that occur. It’s also time to consider Social Security3 allotments.

After Retirement

Once a person leaves his or her job, it’s time to consider a new strategy for wealth building. This may be the time to sell off a company as business owners to add to retirement funding. Now is the time to work with financial professionals to determine when it is best to start pulling from various retirement investment vehicles such as retirement accounts, pensions, and other resources.

Done well and consistently, retirement planning at all ages4 doesn’t have to be aggressive or worrisome. The key here is to start young and work with a financial professional who can help you get the appropriate strategies in place for the future

Important Disclosures

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial professional prior to investing.

No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments.

All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.

1. https://www.investopedia.com/terms/c/compoundinterest.asp

2. https://www.investopedia.com/articles/financial-advisors/122815/how-much-millennials-should-save-retire-comfortably.asp

3. https://www.benefits.gov/compass/article/331

4. https://www.irs.gov/pub/irs-tege/savings_retirement.pd

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