The “accumulation” phase is the first phase and longest phase on the road to retirement. This phase starts at the time your working career begins and continues during the years that you are employed and accruing retirement benefits. There are three important factors to consider when planning your accumulation strategy. 1. How long do I have until retirement? It’s important to recognize how far you are away from desired retirement date to help you decide how much money to save and how to invest that money. The key to this the accumulation phase is to start early and leverage the power of compound interest.
2. How consistently can I save? For many, saving for retirement is a constant battle between attaining a long term goal and meeting short term needs. Though it can be difficult, saving consistently for retirement can mean the difference between a successful retirement and one marked by financial shortfall.
3. How well is my money working for me? The best way to maximize your retirement benefit is to be actively involved in the accumulation phase of your retirement. Understanding what investment options are available and which ones may be right for you takes a bit of effort, but that effort can go a long way in maximizing each dollar saved for retirement. Research has shown that individuals who have invested a portion of their retirement savings in equity based investments have more consistently achieved their retirement planning goals.
Life Associates offers several tools to help create a successful accumulation strategy. If you are a current participant in Life Associates’ retirement plan please Login to our website to access these tools. If you are not currently a participant, please contact Life Associates and start planning for a successful retirement. |
