5 Keys to Successful Retirement Investing
Everyone wants to retire debt free, without the fear of outliving their investment. For some, saving enough money for retirement can seem an impossible feat. But with diligence, patience and persistence, anyone…yes anyone, can retire with dignity and security. Here are 5 keys to making sure your investing experience is enjoyable, successful and sustainable for your future.
- Seek the help of an experienced, independent investment broker.
Having someone who understands investing inside and out, who follows the markets and daily, and who understands your goals is a critical component to your success in retirement investing. We recommend a broker who works with multiple investment companies to find the best mutual funds for your risk tolerance and investment goals. But no matter what, having a professional on your side to guide you can make your investment journey a success.
2. Only invest in what you understand.
Investment can be confusing. And understanding the difference between stocks, bonds, mutual funds, annuities, etc is like speaking Greek to some people. But it’s important that your money is invested in the manner that will perform the best for your situation. And even more important that you understand the basics of that investment. It’s ok to leave the daily trading decisions to your financial advisor, but if you don’t understand how your investments operate, it’s like paying someone to care for your children but not understanding what or how they are doing it. That’s why it’s important to have a financial advisor that truly understands your situation, has the heart of a teacher and can thoroughly and easily explain how your investments work.
3. Diversify your money
It’s never wise to invest all your money in one company, one industry or even one mutual fund. Diversifying your portfolio is the key to long-term sustainability with your investments. This simply means that when you invest in multiple places, your money won’t be totally subjected to big downside swings but it will be able to capture the benefit of strong market upticks. We recommend investing in mutual funds that fall into these four categories: Growth, Growth & Income, Aggressive Growth and International. These four categories will ensure that you capture aggressive returns in high performing investments, while maintaining consistency in proven companies and always being a part of the latest and greatest advancements in the world.
4. Stay consistent
It always pays off to stay in the market. Because you will never experience a loss on your investments unless you take them out. As long as your money is in the market, it will grow and your wealth will build. But it’s also important to continually add to your investments. Growing your retirement through regular, monthly contributions ensures that when the market moves up, you are taking advantage of the interest jump. Slow and steady always wins the race…always.
5. Start early
Just as being consistent helps grow your investment over time, so does starting early on. It’s never too early to begin investing. In fact, the sooner you get started, the more interest you will build over time and the more your investments will be worth in the end. Retirement investing is one thing in life you can’t rush. And if you do start late, you have a lot of catching up to do. As soon as you are debt free and have an emergency fund savings built, it’s time to go!
Get started on your track to investing today by scheduling a short 2-minute phone call. Learn the process for accomplishing your goals and meet the coach or advisor that can help you succeed! Schedule your call today with Freedom Financial Coaching