00:00The following is brought to you by Maybelline Serum Lipstick.
00:11Landing your first job often comes with dreams of buying a car, owning a home, or traveling the world.
00:17But financial coach Nicholas Dean says there's one goal many young people overlook, planning for retirement.
00:23The first thing a young person needs to do now is to become aware or conscious about life in retirement.
00:30And that's what financial planning is all about.
00:33Financial planning forces a person to imagine or visualize what the future position is or the future goal is.
00:42Whether it's driving a new car, living in a new house, and in retirement, what would life be like?
00:48Dean says retirement planning begins with a vision.
00:51Once you know what you want your future to look like, the next step is creating a financial plan to
00:57get there.
00:57So you start with a vision, but then you have to put some numbers behind it to make it a
01:02good financial plan.
01:03And then start working a plan to achieve that goal.
01:07So I would say that is the first thing that a person needs to do earlier.
01:13The earlier you do that, it's better.
01:15And while retirement may be decades away, waiting could come at a cost.
01:20Starting early gives your savings more time to grow and helps offset the rising cost of living caused by inflation.
01:27Dean also encourages employees to make the most of workplace retirement plans, especially when employers match contributions.
01:34Taking advantage of any kind of company retirement plan, employer-based retirement plan is essential, especially if you have the
01:44opportunity to make voluntary contributions.
01:49If such a plan, one, is performing well because not all plans are accumulating interest at the same rate, I
02:00would say it's free money.
02:02And this is the main reason now.
02:04It's free money because most employers are matching you one-to-one.
02:08So if you put a dollar, the employer matches it.
02:12And sometimes it's obligatory, it's mandatory to be part of that plan.
02:17But because some of them give you a voluntary option where they will then match your voluntary contributions in some
02:24measure.
02:25That one, I would say, voluntary contributions, they call it, I think it's AVC, annual voluntary contributions.
02:35If you could get an employer to match those, then don't leave that money on the table.
02:41He also questions against depending solely on government benefits in retirement, saying personal savings should be a key part of
02:49every financial plan.
02:50Like, for instance, NIS, you need to have a student loan contributions inside, 750 weekly contributions over your working life
02:59to be eligible for NIS pension, a national insurance pension.
03:05And that, even national insurance, it has now been changing their rules as to when they're going to pay you
03:12a pension.
03:13Save as much as you can, as fast as you can, for as long as you can.
03:18Saving is the answer to all financial goals.
03:21Retirement may seem far away, but according to Dean, every dollar you save today brings you one step closer to
03:28the future you want tomorrow.
03:30The key isn't how much you start with, it's simply getting started.
03:34Until next time, I am Charlotte Kister reminding you to be your best self.
03:45The preceding was brought to you by Maybelline Serum Lipstick.
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