09 Jun 08 Importance of Retirement Planning
Retirement Planning is one important financial decision which is often postponed and is commonly overlooked upon by most people. The most common reason given by individuals for postponing their retirement planning process is that they are still not yet old enough to be worried about their post retirement financial problems. However, if you ask any qualified financial advisor, the first thing they’d advise you is to start your retirement planning process as early as possible. The earlier you start the more you will benefit from the power of compounding. The thought of out-living your savings is quite scary, isn’t it?
It is recommended that individuals go in for personal financial service offered by a qualified financial advisor who would have a much better understanding of the tax implications involved and keeping that in mind will suggest the best possible portfolio mix. As a rule of thumb, investors should have a high percentage of their networth invested in equity and other high risk alternate investment asset classes when they are young and should slowly increase the weightage of debt investments in their portfolio, as they grow older.
While using the services of a financial advisor there might sometimes arise a situation of conflict of interest. Hence it is very important to build a good personal relationship with your relationship manager or financial advisor who would be guiding you on your financial decisions, through each and every stage of your life. To avoid being misled by your financial advisor, make sure that you hire one from a reputed institution like the NASDAQ listed Northern Trust Corporation which is one of the leading providers of banking, asset management and asset servicing solutions to affluent families, individuals and leading institutions worldwide.
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