Michael Canet, JD LLM, retirement planning expert, discusses three straightforward strategies to help families grow towards a stronger financial future.
Glen Burnie, MD – January 2, 2013 – Michael Canet, JD LLM, Founder of Prostatis Financial Advisors Group LLC, recently discussed how time impacts your retirement money, and offers ways to help build a strong retirement plan.
“I find that time, math and money rarely move in the same direction,” remarked Michael Canet. “It is quite strange because the whole idea of compounding interest and capital appreciation are based on a rate of return compounded over time. In fact, the math for appreciation is based on four variables: Present Value, Future Value, Rate of Return and Time.”
“Logically, time, money and math should be aligned and making retirees (and soon–to-be retirees) money – right?”, asked Michael. “Well, Maybe. If you take risk with your money values can go up — but they can also go down. Market historians and verified data offer long term rates of return that are very attractive but when the economy gets rough, money can (and has been) lost, which is not helping folks and their families grow towards a stronger financial future.”
Michael Canet offered three simple strategies that can help those who are saving and planning for retirement stay on a responsible path:
- Diversify between many different types of assets – Avoid biases such as, “I only invest in mutual funds, or just stocks and bonds,” and do not build in a bias towards products you may not understand, such as: “I don’t believe in life insurance.” Allow yourself to be open to all possibilities – they all may have a lot of merit in a well-designed plan.
- Do not try to time anything. Instead build a great plan based on sound retirement planning principals and then stick with it. Allow time to work for you and do not allow your emotions to work against you and your money.
- Take the time to review. Keep track of where you are, what you have and where you want your retirement planning to go. That is the ultimate key to utilizing time and achieving planning success.
To learn more about Michael Canet, JD LLM and Prostatis Financial Advisors Group LLC, visit http://www.prostatisadvisors.com or call 410-863-1040.