Challenges of saving for retirement

HOUSTON - Trying to save enough for that retirement nest egg can be extremely difficult especially when you factor in longevity and inflation.

Michael Smith, President for STA Wealth Management, says it's never too early to start planning for retirement and the younger you are to start, the more your money can compound and earn for your nest egg.

It's hard to foresee what the financial roller coaster can bring, so Smith says it's wise to have a diverse portfolio but you should definitely have an annuity involved to generate some steady income. He says people, also, often forget to factor in taxes when they plan for their retirement which can be a mistake.

Smith does advise that people hold off on collecting their social security for at least one year if they can. Here's the scenario he likened it to, "So if I asked you today if there was a CD that locked in 8% for 5 years would you take it? Absolutely!"

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