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Financial advisor Don Dirren recently discussed when to start preparing for retirement.

Retirement & Investing Resources - Nationwide

PHOENIX, ARIZ. / DEC. 10, 2021 / The best time to start preparing for retirement is now. Financial advisor Don Dirren explained that age is not a factor, as it’s never too early to begin planning for retirement.

However, Dirren acknowledged that not everyone can begin saving for retirement in their 20s. He recently discussed the best ways to prepare and why starting as young as possible can be extremely beneficial.

“As financial advisors, we know not everybody has the financial freedom to begin saving for retirement in their 20s,” Dirren said. “We still want to encourage individuals to make investments, no matter how small, toward retirement as young as they possibly can.”

Start as Soon as Possible

You may be able to begin saving for retirement, even if you don’t think you have the means. Someone who puts $3,000 per year aside for 10 years in a tax-deferred retirement account would have $338,000 or more by the time they turned 65. That’s when contributing for just 10 years.

Don Dirren explained that those who start later will have to invest much more over time to receive the same return. However, he emphasized that starting at any time is far better than not starting until you reach retirement age. The incredible power of being early is clear.

Making Retirement a Priority

It can be difficult to think about what your life will be like in 30, 40, or 50 years. But according to experts like Don Dirren, making saving for retirement a priority can help you meet other financial goals as well. Having a powerful retirement allows you more financial freedom later on.

You never know what will happen in life, so it’s important to save while you’re able. Hiccups happen, and you may not be able to save as much at a certain point in your life. Putting as much in as possible while you’re able can prevent dire circumstances if the unexpected occurs.

Starting Late Is Okay

Starting late is far better than not starting at all. Experts understand that not everybody has extra cash to save until later in life. Having less time to save is fine, but you’ll need to put more into your retirement account each year.

Someone who wants to have $1 million by the time they retire at 65 years old would have to save about $4,500 per year if they begin at age 20. Someone who starts at age 30 would have to save about $9,000 per year, and someone at age 40 would have to put about $18,000 per year into a requirement account.

Expert Advice from Don Dirren

Don Dirren is a financial advisor with a focus on retirement planning and the protection and preservation of wealth. He has been named one of the top Safe Money Specialists at Bergen Financial Group.

Dirren currently has a strong industry presence throughout the state of Arizona. You can make an appointment with him to discuss your retirement plan on the Bergen Financial Group website.