The Only 4 Retirement Tips You Need
Tip #1 – Check, Check and Recheck
A retirement plan headed for failure is one put on autopilot. Fire safety experts suggest that you check the batteries in your smoke alarms at home once a year. Since a lot can happen in the markets within a years time financial experts suggest that you review the investment selections within your retirement plan at least once a year. Poor performing investments can only be sorted out if you are aware of them. Investments that are exceeding your expectiations can only be noted if you are aware of them. Your awareness increases when you review the allocation within your retirement plan.
Financial Habit #1
Retirement plans are too important to place it on autopilot. Start a good financial habit, review your retirement plan allocations every year at the same time you change your smoke alarm batteries.
Tip #2 – Getting To Know You
Do you what level of investment risk you are comfortable with? If retirement plan investing makes you nervous maybe you are investing in the wrong types of investments, ones that are too risky. Get to know what investments you are comfortable with before making your investment selections. High risk stocks are not for everyone. You can achieve a good rate of return with moderate risky investments. Besides, high risk does not always equate to high returns, just high stress.
Financial Habit #2
Avoid investing in a stock or mutual fund just because everyone else is jumping into it. Research the level of risk and determine how comfortable you are with that risk before putting any money into it.
Tip #3 – Save Money On Fees
The more you pay in fees the less money will be left over for you. Your rate of return is greatly affected by the fees you pay. Mutual fund companies may perform the same services but they charge different fees. Brokers who buy and sell stocks for you can also have different fee arrangements. If your fees are excessive the fund companies and your broker may be making money but your retirement plan assets will never grow.
Financial Habit #3
Avoid being gauged by investment fees, learn about the fees that are lowering your returns.
Tip #4 – Run From Trends
Buying trendy shoes, ties, purses or wall paper may be cool for your social life but avoid trendy investments if you want your retirement plan to afford you a social life some day in retirement. Investing in trendy investments is just not a wise financial move. This type of investing takes too much work and precision. You have to know what stock or mutual fund is hot, when it’s reached it peak and when to sell it. If you miss any one of those moments, you risk losing money on that investment.
Financial Habit #4
Don’t make investing for your retirement such a difficult task; avoid trendy investments.