Enjoy The Ride|Don’t Forget About Retirement
It’s important to enjoy the fruits of your labor during your working years. Buy nice things, travel to nice places and experience a few luxuries. Just be aware while you are enjoying the good life that some day your working life will end and your retirement life will begin. When that happens you will probably also want to enjoy that retirement life. Be sure to get ready for that.
You do not have to be a miser to enjoy your working life and save money for your retirement life. You just need to make sure you invest enough money while you’re working. You do that by making yourself more financially aware.
Improve Your Financial Awareness
Compounding Interest Is Most Important
Picking the right investments is not as important as starting early on retirement investing.
To maximize the power that compounding interest will have on your retirement investments you need to invest as much as you can early on in your career. Waiting for the “right time” to start investing is a big financial oversight.
The number one regret many retirees have is that they failed to save money early enough. They realize the huge financial opportunity they missed by not taking advantage of compounding interest. Become financially aware, avoid that same mistake.
Never Stop Watering
Investments are like a garden. They need constant attention. You wouldn’t plant a garden and then just forget about it would you? No, you would weed it and water it if you wanted it to grow.
The same holds true with your investments. You cannot make your investment selections and then just ignore them until you reach retirement age. If you want your investments to grow in value you need to continually monitor the rate of return, the fees and the investment mix.
If your investment returns are not what you expect, change your investments.
If the mix becomes lopsided due to market conditions, rebalance back to your original target mix.
If your fees have become outrageous and reduce your rate of return too much, make adjustments to lower those fees.
Choose Investments Wisely
When you are a younger investor you can absorb more risk since you have a longer period of time to rebound. You may tend to invest in more aggressive stocks and mutual funds.
As you become more mature and get closer to retirement you may want to be more protective of your investments. At this point you would be more likely to invest in conservative investments. The older you get the more worried you become about preserving your investments.
If you are unsure about which investments work best for you, you may consider investing in a lifestyle or target fund. Within these types of mutual funds the professional money manager selects the investment mix for you. With lifestyle funds all you decide on is whether you want a conservative or aggressive mix. With target funds, you determine your target retirement date.
It’s Your Life, Your Retirement
You make choices every day which determine your current lifestyle. Make good investing decisions to help determine your future retirement.