We can help you find:
1. A Total Solution for Your Business and Your Employees
Most people work hard in their careers in anticipation of a long and relaxing retirement. But it’s important not to make the simple mistake of investing too much time and energy in the present without making adequate provisions for the future. Research has shown that if you wish to enjoy the fruits of your career in old age, it is a good idea to start investing as early as possible. So how much is enough? Studies show that you will need at least 75—90% of your current income during retirement—maybe more, depending on your goals.
You may well have some savings and the government might also contribute in the form of a state pension. However, any additional investment you make can provide a useful boost to your standard of living in retirement.
You are working hard for your future, so it’s only fair that your money should do the same. These pages describe some of the ways that XPensions works to get the best return for your investment, while safeguarding your financial security.
2. Reaching Your Retirement Goals
Defining your Retirement Goals
Identifying retirement goals can help you plan how much you will need in retirement. Do you want to travel? Own a second home? Begin a new hobby? To best understand how to invest for the future, it’s best to understand what you want for your future.
Investing Right Away
As you’ll see in the following pages, when it comes to investing, time is your friend. Starting early gives your money a chance to compound earnings. Compounding is when your invested money earns a return and the earnings are reinvested to earn more returns. Your money is making money.
Planning for a Long Retirement
We’re living longer and that means that we’ll spend more years in retirement. The more and the earlier you invest, the further your money will carry you into your retirement future.
Achieve a Wise Investment Balance
There are many ways to invest your money. You’ll want to choose a portfolio that suits your future expectations, your tolerance for risk and your life stage. These factors change over time, so you’ll want to reflect those changes in your long-term investment plan. Find the balance between Growth Potential and Security that fits you best.
Know the Importance of Diversification
Diversification is one of the time honored hallmarks of successful investments. It is the practice of splitting your money among several different investments in order to avoid concentrated risk. All portfolios managed by XPensions guarantee that your investment is diversified, regardless of your investment or risk profile.
3. Defining your Retirement Goals
Your financial advisor can help you determine how much annual income you might need for retirement. You can start by writing down your retirement goals and estimating the % of your current income that you would need to live comfortably if your retirement started today. Use that % in the worktable below to reach a basic estimate of what you might need to invest each year. In this example, we use an investor who earns an annual salary of $30,000 and is 30 years from retirement. Note that this calculation does not consider any government pension benefit since those benefits vary from country to country.
4. Growth
Put Your Money to Work Today
Starting Early
By starting right away, the Early Investor is able to save more for retirement than the Late Investor, even though the Late Investor contributes twice as much. Part of the reason for that is the Early Investor did not wait and took advantage of compounded earnings. Compound earnings are a way your money may grow faster. Compounding enables you to earn money on both your original investment and your reinvested earnings.
Contributing More
Increasing your contribution now can make a big difference in the future. Assuming $25,000 in annual income, 30 years to retirement, an annual rate of return and a starting deferral of 4%. As illustrated in the example below, less than $5.00 a week can add up to almost $30,000 in the future. Remember that we live longer now and therefore we should plan for a long retirement period.
5. Why focus on the Long Term?
Because your money works even harder for you over the long term.
Riding the Waves of the Stock Market
Watching the ups and downs in the market is enough to make any investor nervous. However, market volatility is not always a bad thing.
“If you expect to be a net saver during the next five years, should you hope for a lower or higher stock market during that period? Many investors get this one wrong. Even though they are going to be net buyers of stocks for many years to come, they are elated when stock prices rise and depressed when they fall. This reaction makes no sense. Only those who will be sellers of equities in the near future should be happy at seeing stocks rise. Prospective purchasers should much prefer sinking prices.”
Investor, Warren Buffet
Source: The Warren Buffet Way, 1995
Why is market Timing Difficult?
Market timing is an investment strategy whereby an investor tries to determine when it’s the best time to buy or sell securities based on when he feels the market will go up or down. This strategy is very risky and has never been consistently proven to work.
Monitor your Portfolio
A long-term strategy doesn’t mean long-term neglect. It is a good idea to monitor your portfolio over the long term as your employer’s plan, or even your life, change. Some examples of times to evaluate your portfolio might be if there are changes in your retirement goals, in your health, in your income, major changes in the Social Security system or dramatic changes in the economy. When you take time to monitor your portfolio, you may see the need to review and re-allocate as well.
1. A Total Solution for Your Business and Your Employees
Most people work hard in their careers in anticipation of a long and relaxing retirement. But it’s important not to make the simple mistake of investing too much time and energy in the present without making adequate provisions for the future. Research has shown that if you wish to enjoy the fruits of your career in old age, it is a good idea to start investing as early as possible. So how much is enough? Studies show that you will need at least 75—90% of your current income during retirement—maybe more, depending on your goals.
You may well have some savings and the government might also contribute in the form of a state pension. However, any additional investment you make can provide a useful boost to your standard of living in retirement.
You are working hard for your future, so it’s only fair that your money should do the same. These pages describe some of the ways that XPensions works to get the best return for your investment, while safeguarding your financial security.
2. Reaching Your Retirement Goals
Defining your Retirement Goals
Identifying retirement goals can help you plan how much you will need in retirement. Do you want to travel? Own a second home? Begin a new hobby? To best understand how to invest for the future, it’s best to understand what you want for your future.
Investing Right Away
As you’ll see in the following pages, when it comes to investing, time is your friend. Starting early gives your money a chance to compound earnings. Compounding is when your invested money earns a return and the earnings are reinvested to earn more returns. Your money is making money.
Planning for a Long Retirement
We’re living longer and that means that we’ll spend more years in retirement. The more and the earlier you invest, the further your money will carry you into your retirement future.
Achieve a Wise Investment Balance
There are many ways to invest your money. You’ll want to choose a portfolio that suits your future expectations, your tolerance for risk and your life stage. These factors change over time, so you’ll want to reflect those changes in your long-term investment plan. Find the balance between Growth Potential and Security that fits you best.
Know the Importance of Diversification
Diversification is one of the time honored hallmarks of successful investments. It is the practice of splitting your money among several different investments in order to avoid concentrated risk. All portfolios managed by XPensions guarantee that your investment is diversified, regardless of your investment or risk profile.
3. Defining your Retirement Goals
Your financial advisor can help you determine how much annual income you might need for retirement. You can start by writing down your retirement goals and estimating the % of your current income that you would need to live comfortably if your retirement started today. Use that % in the worktable below to reach a basic estimate of what you might need to invest each year. In this example, we use an investor who earns an annual salary of $30,000 and is 30 years from retirement. Note that this calculation does not consider any government pension benefit since those benefits vary from country to country.
4. Growth
Put Your Money to Work Today
Starting Early
By starting right away, the Early Investor is able to save more for retirement than the Late Investor, even though the Late Investor contributes twice as much. Part of the reason for that is the Early Investor did not wait and took advantage of compounded earnings. Compound earnings are a way your money may grow faster. Compounding enables you to earn money on both your original investment and your reinvested earnings.
Contributing More
Increasing your contribution now can make a big difference in the future. Assuming $25,000 in annual income, 30 years to retirement, an annual rate of return and a starting deferral of 4%. As illustrated in the example below, less than $5.00 a week can add up to almost $30,000 in the future. Remember that we live longer now and therefore we should plan for a long retirement period.
5. Why focus on the Long Term?
Because your money works even harder for you over the long term.
Riding the Waves of the Stock Market
Watching the ups and downs in the market is enough to make any investor nervous. However, market volatility is not always a bad thing.
“If you expect to be a net saver during the next five years, should you hope for a lower or higher stock market during that period? Many investors get this one wrong. Even though they are going to be net buyers of stocks for many years to come, they are elated when stock prices rise and depressed when they fall. This reaction makes no sense. Only those who will be sellers of equities in the near future should be happy at seeing stocks rise. Prospective purchasers should much prefer sinking prices.”
Investor, Warren Buffet
Source: The Warren Buffet Way, 1995
Why is market Timing Difficult?
Market timing is an investment strategy whereby an investor tries to determine when it’s the best time to buy or sell securities based on when he feels the market will go up or down. This strategy is very risky and has never been consistently proven to work.
Monitor your Portfolio
A long-term strategy doesn’t mean long-term neglect. It is a good idea to monitor your portfolio over the long term as your employer’s plan, or even your life, change. Some examples of times to evaluate your portfolio might be if there are changes in your retirement goals, in your health, in your income, major changes in the Social Security system or dramatic changes in the economy. When you take time to monitor your portfolio, you may see the need to review and re-allocate as well.