Early Investment Planning

Investment Planning: Benefits of Starting Early

The cost of living is increasing. The future is uncertain, and many times people don’t have a plan in place. It can be a costly mistake. Some try to prepare for the future with savings alone, but the return on savings accounts is often below the inflation rate. The bank costs alone can eat away at the savings. Regardless of whether you have saved up to now or have invested in stocks, you’ll benefit from financial advice and an early start when it comes to investment planning.

You already know that you need to plan for your retirement, but you’re not sure where to start. Starting early helps you to build a substantial portfolio. Your retirement depends on your age, number of dependants, and your current income level. To help optimise the income you can receive from your investments, it’s best to seek financial guidance early on. Financial planners can help you make more informed decisions about your money, so it’s there when you need it.

Questions you should ponder on range from whether you’ll have enough money when you retire to how you can make the most of your savings. These questions can be frightening, but a financial advisor can provide guidance and help you plan for retirement. The bottom line is that you need to start early and here’s why:

  1. Retire earlier with proper investment planning

With proper planning, it’s possible to retire earlier, giving you more time to relax, travel and spend with family members. While others will still be working, you’ll be able to enjoy long walks on the beach because you began investing early on and secured your financial wealth. With expert help from Efficient Wealth’s financial planners, you can structure your savings, tax, insurance and investments to maximise return while minimising risk.

  1. Wider range of opportunities

When you start investing early on in life, you can diversify your portfolio. It’s possible to recover from a financial mistake, business failure or retrenchment without it taking a huge chunk out of your nest egg. That is if you still have a couple of years before retirement. If you only start investing later in life, you can take fewer risks, meaning fewer opportunities.

  1. Fewer debts and family responsibilities

While still young and before you have a family, you can put more money towards savings. Instead of incurring debt, you can invest. Once you have a family of your own, you have added responsibilities and expenses. But if you have been investing money in the right way, you’ll have financial security. It’s possible to invest less for a period, if necessary, since your original investments will already be growing. Once your kids are out of the house, you can once again save more. In addition, many of your loans will already have been paid off, giving you more money to put towards saving.

  1. Investment planning from early on helps you to grow a substantial portfolio

If you have bought property 20 years ago, you most probably would have paid it off already. The property prices have increased substantially in two decades. This means you could sell now and downscale to a place for two because you no longer have a large family to house. You can buy cash now or you can keep the property for your children to inherit. No matter how you look at it, the earlier you start with investment planning, the better your return.

That said, even if you’re already near retirement, you can still take steps towards future financial security. Speak with one of the Efficient Wealth consultants regarding investment planning to help you plan for retirement. Call us for a free consultation at 087 894 9988 or email us at enquiries@efw.co.za.