Learning about investing is always a great idea, and never more so than when you are getting close to retiring. It feels like there are so many terms that don’t always mean what you think they should. But beyond that is the actual process of investing and planning. So what are the main things you should keep in mind? Here are the four top things you should keep in mind when investing for retirement.
Failing to plan can be detrimental to your overall success. Start with the end – you need to know how much you will need to have in retirement. Once you have decided how much you want to have saved for your retirement, your advisor can help you with creating the investment plan that you will need. He or she will help you balance the right mix of growth versus stability so you can reach your goals in the amount of time you have. The portfolio you both create will also take into account what the market is currently doing so you can weather the financial storms that may come.
Though you have taken the right first step in retaining a financial advisor, you still need to know what is going on so you can participate in your own retirement and make the right decisions for you. It takes a bit of effort to take the right classes or read the right books from the library, but it truly is worth it in the long run.
It will also help you avoid predatory scam artists who might entice you with a scheme that sounds good on the surface, but once you start to peel back the layers, you’ll see the truth. The same is true about those “free” seminars that offer to teach you all about investments or real estate, but once you get there, you realise that there is a lot of pressure to buy books or investment DVDs and very little that is actually useful information.
When you are learning all about the world of investments, you should spend a little time learning about mistakes others have made so you can avoid them, too. The more time you take here, the more you can focus on doing good things with your own plan, because you will already know what ‘not’ to do.
Those seminars? The “experts” are often commissioned sales people, not professional investment advisors. Who you need is someone who has gone through all the right training and possesses the right knowledge to guide you in making some of the most important decisions you will make.
Keeping these four tips in mind will help you stay focused while working towards creating a perfect retirement investment plan. Once you have the know-how, you can actively participate in the process with your financial advisor, and you can get to your retirement years with as little stress as possible.