Long Beach, California – Financial experts are emphasizing the importance of starting to invest early, particularly for young people who are saving for retirement. Renowned financial advisor Suze Orman highlighted the power of compound interest and the potential benefits of investing in a post-tax Roth IRA account. Meanwhile, David Blanchett, another expert, pointed out the significance of considering fluctuating returns and using more complex calculations to accurately reflect investment outcomes.
Orman and Blanchett both advised young investors to start as early as possible, as every year of delay means less time for money to compound. Orman recommended aiming for a 4% to 6% return on retirement investments, citing the unpredictability of life and the need to be conservative in expectations.
Furthermore, Brian Spinelli, a certified financial planner, stressed the importance of aligning asset allocation with one’s time horizon. He recommended reducing stock investments as one approaches retirement and cautioned against making major changes in asset allocation frequently.
In addition to considering allocation, investors were also encouraged to pay attention to the fees charged on their investments, as these can eat into potential returns. Spinelli also advised against trying to time the market, emphasizing the need to stay invested in order to capture potential returns.
Overall, financial experts emphasized the value of starting early, considering asset allocation, and being mindful of fees in order to maximize potential returns on retirement investments. They provided valuable insights and advice for young investors, highlighting the significance of long-term planning and prudent financial decision-making.