Retirement can seem impossibly far away for many people, and as a result, they don’t plan financially for it. More than a third of Americans have no money saved for retirement. Many of these people with no savings work in jobs that offer 401k’s, which allow people to invest part of their income tax-free. Approximately half of Americans do not take advantage of a 401k that is available to them. The best way to ensure that you can retire in the future is to meet with an investment advisor and set financial goals. Here are two things they can help you with.

Deciding how to invest your money

No matter what your financial situation is, you should always invest, even if it’s just $20 per paycheck. 25 years ago, if you had invested $1,000 in the stock market, it would be worth more than $14,000 today. If you simply save $1,200 a year for forty years in a 401k, a normal return will give you more than $200,000. An investment advisor can help you decide the best strategy for your money and where to put it. If you are young, investing in stocks with high risk but high reward is a common strategy. As you get older, it’s common to shift capital to more conservative stocks.

Retiring is an expensive life choice

At retirement, the average US citizen will receive about $15,000 a year in Social Security benefits. A very conservative lifestyle, with little or no travel, will cost a retirement of more than $40,000 on average. In short, you need to have savings if you want to withdraw. A 401k or other stock market account is one of the best ways to bridge the gap. Furthermore, the average life expectancy of Americans today is over 85 years, which is significantly higher than that of past generations. This means that retirement will be longer and therefore more expensive. The normal cost of living will also generally increase when one stops working. With more free time, annual entertainment and travel expenses will often increase dramatically. Making sure your savings have enough for you to withdraw and enjoy is a goal that financial companies can help you achieve. As mentioned above, an investment advisor can help you develop a strategy for building up your money over time and providing the amount you need for retirement.

While most people start dreaming of retirement as soon as they start working, many don’t start planning for it until it’s too late. The sooner you consult with an investment advisor, the sooner you can start growing your money so that you have enough to enjoy your later years. A retirement without travel or entertainment is not what many people have in mind, but without adequate savings, it will be the only lifestyle most can afford.