Building Your Wealth

You work hard. You save money. Is it fair to say that while you save money for today’s expenses, you also save money to build your wealth?

Building wealth is a long-term process that requires commitment. The sooner you commit to building your wealth, the better the end result may be. For example, think of an exponential curve. The longer you are on the curve, the greater the results. The longer you wait, the more wealth opportunity comes off the back end of the curve, which is when a majority of wealth is created.

During your wealth building process, savings may be designated as “short-term” or “long-term” savings.

Short-term savings can be defined as savings accounts, checking accounts or money market accounts.  These are assets that can be easily accessible.  

Long-term wealth building is commonly categorized as “Retirement Savings”.  Retirement savings can be qualified money or non-qualified money.  A majority of qualified long-term savings can be found in company retirement plans or individual IRAs.  Building long-term wealth is part of the retirement planning process, and having the ability to turn your wealth into lifetime income in retirement, is a key piece of the process.

During your lifetime, you will earn a finite amount of money, so it is very important to be efficient with your long-term savings.  At OptimizingYourLifetimeIncome.com, we begin with the end in mind.  We help our clients have a clear understanding of how to pack their bags to build their wealth, but more importantly allow them to have options as they unpack their bags when they decide to retire.  When this process is done properly, the view from the top of the mountain looks very clear.