home loan finance blog
Financial independence is something most of us if not all of us strive for and it’s a continuous effort. You work, pay your bills and try to save money although it can sometimes be easier said than done. Having a 401k with contributions matched by your employer is a great way to pave a solid road to a successful retirement. However if you work for a small company, you are self-employed or a business owner, you obviously need an alternative route.
That’s where Wealth Mangers come in. They are good financial advisors and investment managers that will help you get your ducks in a row so you can become financially independent and retire at the age you choose. There are some factors that you need to think about.
*At what age do you want to retire? You will need to think about your age and income level at this point in your life and make your decisions about your portfolio based on those facts. A person starting a retirement account at 30 years of age will probably have a different portfolio than a person starting at 45 years old. You should also keep in mind that your portfolio will probably change as you get older. For instance if you are 25 and single with a gross income level of $40,000 you could be married by the time you are 30 with an income level of $50,000 or a combined income level of $80,000 and have 2 kids. The types of financial risks you take may vary and you might add life insurance to your policy as well as college tuition. Once your kids are grown and in college your financial goals will change again as will your portfolio.
*How much money do you want to have when you retire? Again you have to look at your age, income level and how much of it you have to invest.
If you dont make a lot of money and you have high debt, your 45 years old, but you want a substantial amount of money when you retire, you will probably need to place your money in higher risk investments although a very good and talented wealth manager can help you compile a portfolio with a combination of risk level investments to help you achieve your goals. As time goes on you can always add to your portfolio when you reach the next level in your business. A good wealth manager will always let you know when there is an opportunity for you to increase your level of wealth through investments and when you should juggle your money to keep you on the pathway to your financial goals and interests, not the investment advisors.