Whether it’s resolutions or goals for 2016, how many have you stuck with so far this year?
It is difficult to stick with something just for one year. Imagine how hard it is to stick with something for 30 years.
30 years. That’s exactly what you’re trying to accomplish when you’re saving for retirement.
Most resolutions/goals fail because:
- You set your goals too high
- There’s sacrifice involved – so it takes effort
- You don’t see results right away
The key to long term success in saving for retirement is to "Commit to a reasonable savings plan." Measure your results based on hitting savings goals – not how fast your money is growing. Be patient. It will take time to see the results, but you will.
If you saved $10,000 today and your money grows on average by 7%/year, your money will double in around 10 years.
Let’s look at the results every time your money doubles, which is every 10 years based on our example.
- After the first 10 years you will have $20,000
- After the second 10 years, it will now equal $40,000
- And after another 10 years (30 years total) – it will now equal $80,000
THAT’S 8x YOUR MONEY!
But before that $10,000 can turn into $80,000, it has to turn into $20,000. This will take time.
To hit your retirement goal, focus on what you can control. You can’t control the market, but you can control taking advantage of the time you have to save and hitting your annual savings goal.
Be patient and stick with your plan.
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Date Posted: 08/02/2016 Advice provided in this article is meant for educational purposes only and financial education is important to us. Before making decisions regarding your personal financial situation, please consult an advisor or conduct your own due diligence. If you would like to discuss your Retirement Income Plan with an HCM Wealth Advisor, please give us a call – 513-598-5120. Located in Cincinnati, Ohio, we serve clients in 28 states, and we’d love to help.