In today’s world, it is crucial for everyone to take control of their financial situation and plan for their future and that of their children. The government’s ability to provide an aged pension for retirees is no longer guaranteed, as the world population is aging, and there will be fewer working age people to support retirees in the coming decades.
Compulsory employer-paid superannuation and financial incentives for self-funded retirees have been introduced by the government to address this issue. However, many people are still not prepared for retirement, especially women who may have to take time off work to raise children, earn less than men, and may not have received superannuation contributions for their entire working life.
Investing in income-producing assets, such as property, is one of the best ways to create an ongoing income stream that is not related to physical work. Compound interest is a crucial concept in building wealth for retirement and creating finances that can be directed towards charities or helping family members. The rate and time of compounding are crucial, with higher rates and longer timeframes resulting in greater final outcomes. Therefore, it is essential to start investing early to maximize the benefits of compounding.
