The Importance of Setting Retirement Goals Early

If you're relatively young or just beginning your career, you might not have given retirement any thought. It may seem like there's no sense in taking it into consideration just yet, with several decades left in your working life. But, it's actually a good idea to start thinking about what you want for yourself in retirement now. Additionally, when you start to plan well in advance, you might even put yourself in a position to retire early.

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It's important to think about where you want to be when it comes time to retire. At what age would you like to stop working? Where do you want to live? How much should you have at your disposal to afford your desired lifestyle? These are a few questions you should ask yourself now to get a feel for how you should begin your investment journey, or if you are already an investor, how you should begin preparing to invest in your retirement, if you haven't already. You should have a plan for your investments, and to do this, you should know what you'd like to use your assets for when it comes time to actually make withdrawals from your account. Do you want to travel? Move somewhere more comfortable? Spend time relaxing with your children and grandchildren? To properly plan, it'll be necessary to at least have an idea of what you'd like to do with your assets in retirement. By understanding this, you will be able to better set a reachable goal for your investments.

Think About Your Future Self

If you wait too long to start thinking about retirement, you might not be in as good of a position physically and mentally as you are now. Not to mention that you can never be certain what your financial situation may be. Think about what life may be like twenty or thirty years from now, and how you might feel if you were just then beginning to think about your retirement plan. You will have missed out on years and years of saving and investing. Consider your future self now by doing the research, making the investments, and preparing for a post-career life. Even if it doesn't seem important right now, you will thank yourself later by doing the work ahead of time.

Setting Up an IRA

Once you've decided it's a good idea to take your retirement goals into consideration, you'll need to decide how exactly you'd like to plan. While there are many different investment vehicles to consider when planning for retirement, including a 401(k), it might be a good idea to set up an IRA account. IRA stands for Individual Retirement Account and allows you to contribute and invest funds for retirement. Currently, Webull only allows Traditional, Roth, and Rollover IRAs, though hopefully more will be offered in the future. What's the difference between the three?

- Traditional IRA: Make pre-tax contributions and enjoy tax-deferred growth on your investments.

- Roth IRA: With after-tax contributions, your withdrawals are tax-free—eligibility may be dependent on income.

- Rollover IRA: You can "rollover" a previous employer-sponsored IRA to your Webull account.

Although there are many benefits to having an IRA, it's crucial to know the risks as well before opening an account. IRAs have the same risks as investing in the market, so they are not suitable for everyone. Tax benefits also may vary—always consider talking to a tax professional before making any investments.

Find out more about Webull IRAs here.

Disclosure: All investments involve risk, and not all risks are suitable for every investor. The value of securities may fluctuate and as a result, clients may lose more than their original investment. The past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit or protect against loss in a down market. There is always the potential of losing money when you invest in securities or other financial products. Investors should consider their investment objectives and risks carefully before investing.