Why Investors Starting at Age 25 May Already Be Behind; Aura Wealth Advisors Respond to MSN Article About Retirement Planning Starting at Birth

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Are investors who begin establishing their strategies and habits in their mid-20s starting too late? Bert Doerhoff, CPA, founder of Aura Wealth Advisors, responds to an MSN.com article about the gap between savings created by investing in a 401(k) and the income needed for 25 years of retirement living.

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The goal of investing should be to deliver an ever-increasing cash flow in retirement rather than to enrich the advisor. The two have to work together toward a common goal.

Are investors who begin establishing their strategies and habits in their mid-20s starting too late? Some financial experts say yes, especially when it comes to establishing lifelong patterns and ideas toward success. Bert Doerhoff, CPA, founder of Aura Wealth Advisors, explains why as he responds to an MSN.com article about the gap between savings created by investing in a 401(k) and the income needed for 25 years of retirement living.

The MSN article highlighted that some investment experts have endorsed each child born in the U.S. receiving $1,000 in a “KidSave” account. The funds would remain secure in the account, where they would compound until the child reached the age of 65. Over 65 years, at 6 percent each year, the account could accumulate $44,145 in tax-deferred savings. This amount is not adequate to support the retirement of the individual fully.

However, proponents of the plan believe that it would encourage a habit of saving and investing with a long-term view of wealth accumulation across the general population. For instance, $20 added each month over 20 years would increase the account to more than $240,000 by the time the individual is ready to retire.

“This is a great example of the value of eliminating the ‘noise’ of the investment community. The KidSave concept focuses on a simple long term return rather than trying to time getting in and out and picking the current hot segment. Investing is a marathon and speculating is a sprint. KidSave accounts represent a way to get individuals focused on long-term wealth accumulation as a lifelong habit,” says Doerhoff.

Doerhoff also says that while KidSave may be a nice concept, there’s a more immediate change coming that will improve wealth accumulation for the average investor. Among other changes, the new fiduciary regulations coming out spring 2016 are designed to help ensure advisors do not encourage investors to make changes that detract from long-term investment performance. “The goal of investing should be to deliver an ever-increasing cash flow in retirement rather than to enrich the advisor. The two have to work together toward a common goal,” says Doerhoff.

About Bert Doerhoff:
Bert Doerhoff, CPA, the founder of Aura Wealth Advisors, is a fee based investment advisor who works with families and small business owners to help them protect and grow wealth for life. He designs comprehensive tailored investment solutions with strategic defensive investment approaches that retain growth potential. Guided by fiduciary standards, he works with clients to build a legacy and deliver ever increasing cash flow in retirement that will protect their lifestyle from the effects of inflation.    

Contact Bert Doerhoff, CPA, by email at bdcpa(at)AccuBiz(dot)net; by phone at (573) 634-4006; or learn more at http://www.AuraWealth.com.

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Amy Vaughan
Aura Wealth Advisors
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Bert Doerhoff, CPA
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since: 02/2010
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