Retiring with a million-cedi portfolio may sound like a dream, but it’s certainly attainable. While no plan is guaranteed, the following steps will go a long way toward making that dream a reality.

First, set a goal. Nobody plans to fail, but plenty fail to plan. Lay out your desired financial future.  

Second, start saving. Enrolling in any plan such as the Tiers 2 and 3 pension plans being managed by PenTrust Limited is a great start.

 Third, get aggressive. Asset-allocation dictates most investment returns. Fixed-income investments and certificates of deposits won’t grow much wealth, but certain equities will do.

Build a rainy day fund. Setbacks are inevitable. Structure your finances to avoid a disaster.

Increase the amount you save as you get older. Raises, new jobs and other life changes let you increase the amount you put away.

Watch your spending. Live within your means, which means being smart when it comes to cars, kids, vacations, homes and your overall budget.

Monitor your portfolio. Once a year, check your portfolio by requesting for statements and reviewing the performance of your investments/funds.

Max out your options. Make the maximum contributions to optional pension plans such as the PenTrust Tier 3 Master Trust or the PenTrust Personal Pension Schemes that allow for tax-free contributions of up to 16.5 percent!

Make catch-up contributions. At age 50, start putting more into low risk investments such as pension funds.

And last but not least, remember patience is a virtue. Get-rich-quick schemes are usually just that – schemes. Few things are as powerful as compounding interest. And its impact is even greater when there’s more time to save. The sooner you start, the better your odds of becoming a millionaire, or more.

Source: Internet, PenTrust Limited