Whether you are just starting your first job or you are firmly settled in your career, you should be thinking about retirement planning. It may be years before you are able to retire, but it will take much longer if you don’t plan ahead. In addition to your retirement savings through your employer and your IRA, you should consider creating an investment portfolio that will benefit you in the future. Read on for helpful tips on how to create a balanced retirement portfolio.
Diversify
As the times change, different stocks will lead the market. While you may have stocks that perform well for a few years, they could also fall out of favor a few years after their good run. That’s why it’s a good idea to invest in different kinds of stock. You will still have occasional fluctuations in your portfolio, but overall, your investments will be much more balanced and protect you as the years go by.
Start Aggressively
When you first start saving for retirement in your twenties, you can begin with an all-stock portfolio. Your money will hopefully double approximately every 10 years, which is why it’s so important to start saving at a relatively young age. As you get older, you can begin to invest in bonds as well as stocks. For example, people in their 30s may want to consider a portfolio of stocks and bonds. While those in their 40s can further diversify into gold and commodities.
Seek Advice
Planning for retirement can sound confusing, especially if you are just starting out. The best way to understand how to plan for your financial future is by seeking the advice of retirement planning experts with a proven track record of success. Your retirement planner can help take the mystery out of investments, and you’ll feel more in control of your future.
Financial Directions, LLC has been registered with the Securities Exchange Commission since 1999. We always put our clients’ best interest first, no matter what stage of retirement planning you’re in. Contact us at (520) 408-7777 or visit our website to learn more about beginning a long-term relationship with us.
