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Strategic financial planning involves investing in commodities that increase in value, starting at an early age, and becoming debt-free. Real estate and precious minerals are profitable sources of wealth. Starting early and avoiding high-interest loans are crucial for a comfortable retirement.
Strategic financial planning is a detailed process that investors use to plan for retirement. While there are many methods available to achieve these goals, industry experts have determined that there are essentially three keys that will determine overall success in most strategic financial planning cases. The first key is to invest in commodities that will steadily increase in value over a long period of time. The other two factors may come as a surprise, however: start investing at an early age and become debt-free as quickly as possible. Each of these factors play a huge role in building financial wealth over a lifetime, and delaying any aspect could easily lead to a much less comfortable retirement.
Whenever investors think about strategic financial planning, the first thing that usually comes to mind is the stock market. While there is a lot of money to be made on Wall Street in the United States, experts agree that a large amount of a person’s overall wealth at retirement age often comes from many other sources. Real estate has always been a highly profitable enterprise and commodities such as precious gems and minerals have been statistically equally profitable. Dividing an investment portfolio into many different areas is perhaps the simplest way to create wealth in any economy.
The age at which an investor starts thinking about strategic financial planning also plays a crucial role in their average retirement age. If just $20 US dollars (USD) were set aside weekly for 20 years and collected an average of 10% interest annually, a total of $188,200.00 (USD) would be saved. Double this equation at age 40 and the net savings would jump to $506,300.00 (USD), which would be a comfortable amount for many middle-class families to retire with. Compound interest can be an investor’s best friend or a debtor’s worst nightmare.
Perhaps the most crucial aspect of strategic financial planning is doing everything possible to avoid paying high interest rates on long-term loans. For example, if a $200,000.00 (USD) home was purchased at 7% interest on a conventional 30-year loan, the homeowner would ultimately pay $479,016.00 (USD) if every single payment was made in time. Since the average family purchases two to three homes over a lifetime, it would be relatively easy to waste $1.5 million (USD) on interest alone, once you factor in all residences, vehicles, credit cards, and other credit lines. Staying debt-free is a huge part of strategic financial planning that opens up many great investment opportunities over a consumer’s lifetime, so it should always be top priority whenever physically possible.
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