When asked to think of someone who has the wealth to retire comfortably, many people first picture someone who was born into a rich family and inherited all the money they could ever need. Others assume a great win or highly lucrative career. For people like this, retirement is no big deal, because financially, they never needed to worry anyway.
If you think wealthy retirees had it easy, you’re mistaken.
This could be you – you’ve just got to know how to get started.There’s no doubt that some people like this exist, but if you think the majority of the wealthy had it easy, you’re mistaken. Most people who retire with money do so because they worked hard to slowly accumulate it over the years.
Some people, when they go through their finances and start planning for retirement, have a sense of jealousy for the “born rich” class. They assume that most people with cushy retirements didn’t have to work for it.
According to Time Magazine, that’s not true. The news outlet surveyed individuals who retired wealthy and found that 58 per cent of them came from middle-class backgrounds originally. Amazingly, 19 per cent were even poorer than that.
Most people who are rich, get there through hard work.
Time also found that when asked to name sources for their wealth, only 10 per cent of rich people identified inheritance. Meanwhile, 52 per cent said earned income was key, and 32 per cent cited investment dollars. So if wealth isn’t created from luck, what obstacles might you be facing to creating the future you want.
If you play your cards right, you could end up like the majority in that Time survey – retiring well because of your own self-made wealth. First, though, you need a solid financial investment plan.
The key is to choose the right investments not just based on their performance now, but also based on what will yield surefire returns over the coming years and even decades.According to CPA Australia, the best strategy for long-term savings is often one that works in a slow and steady manner. If you study up on how annual compounding works, then you will understand the optimal strategy – invest early and often, and every dollar of interest today will turn into even more later.
Everyone is at a different stage in the long-term planning process, and as such, everyone needs a different sort of financial advice. At Invest Blue, we aim to help everyone at every stage.
What you need to know
This information is provided by Invest Blue Limited (ABN 91 100 874 744). The information contained in this article is of general nature only and does not take into account the objectives, financial situation or needs of any particular person. Therefore, before making any decision, you should consider the appropriateness of the advice with regards to those matters and seek personal financial, tax and/or legal advice prior to acting on this information. Read our Financial Services Guide for information about our services, including the fees and other benefits that AMP companies and their representatives may receive in relations to products and services provided to you.
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