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Compound interest is interest calculated on both the original principal and all previously accumulated interest. Compounding adds earned interest back into the original principal balance of your account, which then earns even more interest on the new higher principal balance, “compounding” your returns. Interest can be compounded at different time intervals depending on the terms of the savings instrument: annually, quarterly, monthly, or daily. The more frequently interest is compounded, the faster your principal balance grows. For investors and savers, compound interest is a positive benefit.

We always hope that life will go this way, but life is not always like that. Therefore, taking action is key. I’ve been helping folks reach their goals for over 30 years and one thing I’ve learned. Those that leave things to chance, are generally not successful.

Some people like surprises but a lot of people don’t. When it comes to retirement, I think most of us want to know that there will be no surprises, especially after a long career of hard work. Unfortunately, many retirees are in for a surprise around retirement. From earning a paycheck to withdrawing funds Financially, retirement involves big financial changes. Tapping savings, Social Security and investments is a lot different than collecting a paycheck. One of the biggest changes is your tax situation. Here are 6 big impacts to consider:

Are you a homeowner needing extra cash for a home renovation or another purpose? If so, how will you finance the project? Two common financing tools tap into home equity (the value of your home less total debt outstanding on your home): a Home Equity Line of Credit (HELOC) and a Home Equity Loan. Do you know the difference between the two? Most homeowners think they are the same thing – but this is not the case.

For those over the age of 60, the U.S. ranked 10th out of 143 nations in happiness. Canada edged out the U.S., grabbing 8th place. In case you are wondering, Denmark topped the list. Will you be receiving Social Security? Does your spouse or partner have any savings? Will you have any other income such as rental income or a pension? Are you able to reduce expenses in retirement? Are you planning on any part time work in retirement?

When I graduated from college, I was fortunate to have had enough savings and part-time work to pay for my four years and make it to graduation day. But after college I spent the first year or so in a bad job, living on a friend’s sofa, and paying off credit card bills. Money was tight and not working or taking a gap year abroad was never an option for me. The pressure to earn money and pay my bills was there for many years.