Monday, January 26, 2015

Target dated retirement funds are known as Retirefunds and should be part of your financial future.

If you were to ask a qualified investment adviser what is the best time to begin investing for your retirement, S/he would tell you it was 40 years ago. They would also suggest that, the second best time to begin is today!  Everyone who has ever been involved with the subject of saving for retirement knows how true this statement is. The longer your horizon is to the big day, and the earlier you start saving and investing, the more you will have in retirement.

Retirefunds or target dated retirement funds, set up with your retirement date in mind. If that date is 30 years out, then you are ahead of 98% of your peers in planning for the future.  If that date is only 10 years out, then you are in the middle of the pack so to speak, of your peers in planning for the big day. In other words, most people only think about their retirement and it's financial consequences as it gets closer.  Obviously, the sooner you take the plunge and begin your investment plan, the better off you will be in your golden years. If you are one of the Millennial generation (currently between the age of 18 and 34) you should be talking to a qualified investment adviser right now about "your" plan to retire in good financial health.

I have a nephew who just turned 20 and he recently approached me with some questions about how he should start an investment plan.  We talked briefly about registered retirement savings plans and tax free savings accounts but my main advice to him is to seek out a good financial planner and to make a Retirefund or target dated retirement fund, one of his main options. I wish I had been as in tune with finances at his age as he seems to be. While many of his peers are still looking for jobs, going to college or university etc, he already has some significant savings and is looking for solid advice in planning for a rainy day.

 Facts: 25 years of research shows that, "Individuals don't spend time doing any planning or thinking about retirement until it happens," (Salisbury)  In fact, most people spend much more time planning a vacation than planning for retirement.

I happen to be from the generation that was blessed with a pension plan I had paid into for 36 years,  It makes me more free to play with a portion of my portfolio.  If you are not part of a long term pension plan (and even if you are) you should not "play" with your retirement money.

Since this article is a "heads up" so to speak for the 18-34 yr old crowd, I will not get into boring details of individual funds or companies.  I will leave that to your qualified investment adviser.

Here are some resources to help you investigate Retirefunds, as you begin your journey to financial independence in retirement.

Familiarize yourself with the various funds then sit down with a qualified financial planner to discuss your Retirefund options.  Don't play the market. Leave that to the experts.

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