Summary of Retirement Investing Strategies
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Summary of Retirement Investing Strategies
Saving for retirement isn’t simply a matter of stashing your money away for later. It is an involved process with many components to consider. Ask yourself questions like the following:
- How many years do I have before I need to draw on my retirement investments?
- What is my tolerance for risk—how much can I afford to lose on a poor investment choice?
- Will I benefit from current income tax savings—will I likely be in a higher or lower income tax bracket when I retire?
Using your answers to questions like these will help you design a retirement plan asset allocation model that will work for you. Here are some additional ideas to try:
Practical Ideas I Can Start with Today
- Add up my monthly expenses to get a sense of how much I need to live on. Ask myself what would change in retirement.
- Determine my risk tolerance. Use this calculator.
- Create a diversified portfolio of investments that is likely to provide the greatest return in keeping with my risk tolerance. Use this calculator.
- Meet with a financial planner or investment advisor to craft an investment plan that can fund my retirement.
What you have learned
- Time Horizon and Investing for Retirement
- Volatility in Retirement Investing
- Asset Allocation in Retirement Investing
- Tax Considerations in Retirement