David Giertz’s three key points to effective planning for retirement

The statistic shows that most people cannot imagine the kind of life they are likely to lead after retirement. The lifestyle can either be good or bad depending on your planning when you are in employment.

David Giertz, a financial planner from Ohio with master’s degree in planning as well as a coach of business, leaders gives an elaborate and comprehensive way of planning for retirement money. He argues that when efficiently planning, one should consider three key points:

In his advice, David Giertz said that evaluation of financial health is mandatory for proper retirement planning. An individual need to make an appropriate comparison between the total amount he earns versus the total expenditure including the debt repayment in a given a given duration. In case the expenses are higher than earnings, then it means that you will have nothing to save. If you are in such condition, you need to reduce the expenditure by operating on a lean budget to enables you to save retirement.

Apart from evaluating the financial health, he persuades the youth to take advantage of compound interest by beginning to save as early as possible to accumulate more money through compound interests by adding more money. Upon retirement, all the collected wealth are made tax free and also earn interest at a given rate. The more the savings, the more the interests earned because it is directly proportional to the deposited amount as given in the commercial arithmetic formulae. Apart from the increase in the deposited amount, more savings also increases the number of years used in computing the interest.

Most people should understand the first two points and be much willing to save a lot for retirement but cannot succeed in saving enough cash due to little income from mainstream employment. David Giertz advises such people to have a side gig or business that he describes as a hobby businesses. These enterprises include computer games, online writings, among others business ventures. These enterprises are beneficial because of the act as a source of extra income for the family, they help in proper utilization of leisure time and makes him/her enjoy himself/herself.