What Happens Financially When You Work One More Year?

The impact of saving more, spending less later and benefiting from an extra year or more of compounding can be truly staggering.

An older man works on his computer at his desk in the office.
(Image credit: Getty Images)

As a financial planner, I believe in the efficacy of financial planning. One of the core tenets of true financial planning is modeling. Not the kind of modeling that Giselle does, but rather financial modeling. The benefits of financial modeling are plentiful; however, my favorite aspect is understanding what moves the needle.

What do I mean by “move the needle”? You see, modeling is an imperfect science, as there are infinite unknowns about the future we can’t control. What we can control and glean from modeling is the net effect of our decisions. It can reveal if paying off the home early or investing makes sense. What happens if you buy a second home, or pay for all three kids’ college tuition? I really enjoy rolling up our sleeves together and helping decipher the data to make well-informed directional decisions.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

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Andrew Rosen, CFP®, CEP
President, Partner and Financial Adviser, Diversified, LLC

In March 2010, Andrew Rosen joined Diversified, bringing with him nine years of financial industry experience.  As a financial planner, Andrew forges lifelong relationships with clients, coaching them through all stages of life. He has obtained his Series 6, 7 and 63, along with property/casualty and health/life insurance licenses.