BRIDGEPORT, W.Va (WDTV)- Question: I am 45 and would like to know when is the best time to start preparing for retirement?
Answer (John Halterman, Beacon Wealth Management): “If you're talking about retirement accumulation, I would say as soon as you get a job you have got to start saving for retirement.
I always say there are three things you have to be concerned about when I accumulating money. That is interest that you earn on your money, the amount of money that you put away, and the time that you have for it.
Compound interest is mostly affected more by time than anything else. I'd rather see a person put a little bit away and do it for a long time than to wait until they get older. When it comes to distribution planning, that's a whole different ballgame. The way you get to retirement versus the way you actually finish retirement is totally different because what you have to be concerned about as you approach what I call the retirement red zone, which is the 10 years before retirement and the 10 years after. You really have to start worrying about mitigating risk because at that point if you take huge losses before you go to retire, unfortunately it's going to make a huge impact on the amount of income you're going to have. In addition, when you first retire, if you take huge losses it's going to have a big impact on the chance of you running out of money which is also going to impact your income.
Two different scenarios, two different things to worry about. But definitely you have time on both of them. The thing I always tell people is take what you have today, focus on the future, and make sure you do the right things now.”