Top 7 Tips for Retirement Investing

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Don't wait too long. Follow these 7 retirement investing tips.It’s generally understood that investing is risky and you can lose money just as easily as you can make it. These risks seem fair, but when you’re investing for your retirement, the risks can seem a lot more dangerous. To avoid losing money, be sure to take note of these bits of helpful advice so that your savings and investments bring you the most money possible during retirement.

1. Avoid the Potholes

The road to investment is roughly paved. Nothing is said all up front, and hidden fees are behind every tree. However, it’s relatively easy to avoid them if you know about them and know where to look. Small unadvertised fees are easy to overlook, especially if they are as little as 1% every year. However, this can amount to tens of thousands of dollars by the time you reach retirement.

2. Take Advantage of Tax Breaks

For some people, this might seems like a no brainer. Investing your money in a workplace 401K or in an IRA is the best option because they compound your tax-deferred earnings. Also, it common for your employer to match the amount you contribute to your retirement account every year. You also generally get a tax break on your taxable income every year you contribute.

3. Not Saving or Saving Late

Again, this might seem obvious, but a startling number of people never start retirement planning or if they do, they invest too little and they don’t have very much to show for their work come retirement. The typical average contribution to a retirement account is 9%. If a person begins saving at 22 years old and keep contributing 6% every year until 66, they should have enough if their employer matches 50% of their contribution. However, this isn’t always realistic. There are gaps in contribution and you can’t guarantee your employer will match you and if you start late, then 9% is definitely not enough.

4. Know all the Risks Involved

Never focus on just one risk, there are many involved in investing and they all deserve your equal attention. Except for the very fortunate and financially stable, most people need to receive substantial returns on their portfolio so that they arrive at retirement with a good sum of money. This means investing in stocks should be a priority. There are more risks involved in the stock market, but there are also risks not investing in stock. Check out all the risks involved and don’t be afraid to take some chances.

5. Random Investing

A part of effective wealth management involves having an investment plan. Don’t invest your savings willy-nilly. Settle down and study the market, try to learn enough to make reasonably and knowledgeable decisions so that you don’t blindly follow your companies plan or do what everyone else is doing.

6. Maintaining Your Retirement Portfolio

As you get closer to retirement, don’t fail to start reorganizing your retirement portfolio so that it gradually shifts from accumulation of wealth to distribution and preservation so that your hard work keeps paying off year after year. A financial advisor can help you with this.

7. Enjoy Your Nest Egg

After it’s all been said and done, enjoy the money you’ve saved. Some people have a hard time letting go of the accounts they’ve built up for so long. Letting it turn into income can be a bit painful, but you need to just accept that you’ve done a good job and now it’s time to relax.