Building a Bright Retirement Future
Clear, achievable, and meaningful goals can lay the foundation for success. Vague aspirations provide vision but may have limited worth without a well-defined plan. It often leads to dependence on past performance or arbitrary investment rules, which may carry risks when striving to achieve your financial goals.
Time is a critical factor in goal setting that can shape your financial objectives. With each day that goes by without financial contributions, the cost of reaching your goals may increase. Along your goal-setting journey, you may encounter various obstacles that are important to take into consideration when creating a well-defined financial plan:
Time's Value: The more time you have to grow your money, the better. Less time available could mean higher costs to achieve goals—known as "the cost of waiting." If you wait to begin contributing, you will probably have to contribute more to reach the same financial goal than if you started early.
Risk vs. Time: With ample time, money leverages compounding interest, reducing the need for higher returns and associated risks. However, assuming greater risks to compensate for lost time may impact your financial outcomes.
Inflation: Over time, inflation erodes money's true value, undermining purchasing power. Accounting for inflation is crucial when calculating the cost of achieving your retirement objectives.
Taxes: Taxes are a certainty that can impede progress toward goals. Proper planning and effective tools can help manage and reduce their impact.
Life's Surprises: Unexpected challenges and situations often arise, requiring frequent goal review and adjustment to stay on track and navigate uncertainties with resilience.
Goals and objectives may become the compass for your investment decisions, potentially acting as benchmarks that measure your investment strategy's performance. Focus on your objectives, not on market returns that you can't control. This way, you can protect yourself from following the crowd, which may be influenced by emotions like excitement or fear.
Remember, setting clear and meaningful goals is crucial in your pursuit of success. By understanding the impact of time, managing risks, accounting for inflation and taxes, and adapting to life's surprises, you can navigate the path to achieving your financial aspirations with greater confidence.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial professional prior to investing. All performance referenced is historical and is no guarantee of future results.
There is no assurance that the techniques and strategies discussed are suitable for all investors or will yield positive outcomes. The purchase of certain securities may be required to effect some of the strategies. Investing involves risks including possible loss of principal.
Return to Participant Insights
For more information, Contact MCF today!
Hunter Nighbert
Financial Advisor
hnighbert@mcfadvisors.com
859-967-0990
Schedule a meeting
IMPORTANT DISCLOSURE INFORMATION
MCF Advisors, LLC (“MCF”) is a SEC registered investment adviser. Registration as an investment adviser does not imply a certain level of skill or training. The oral and written communications of an adviser provide you with information about which you determine to hire or retain an adviser. More information about the adviser can also be found by visiting: https://adviserinfo.sec.gov/firm/summary/130372. The above commentary is for informational purposes only. Information prepared from third-party sources is believed to be reliable though its accuracy is not guaranteed. This is not intended as an offer or solicitation with respect to the purchase or sale of any security. MCF may only transact business in those states in which it is registered, or qualifies for an exemption or exclusion from registration requirements. Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by MCF), or any non-investment related content, made reference to directly or indirectly in this blog/newsletter will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog/newsletter serves as the receipt of, or as a substitute for, personalized investment advice from MCF. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. MCF is neither a law firm nor a certified public accounting firm and no portion of this content should be construed as legal or accounting advice. A copy of MCF’s current written disclosure statement and customer relationship summary (“Form CRS”) discussing our advisory services and fees continues to remain available upon request. The scope of the services to be provided depends upon the needs of the client and the terms of the engagement. If you are a MCF client, please remember to contact MCF, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services.