Investing for Retirement: an Age-related Guide
This article will discuss strategies to ensure your investments see you through your retirement, tailored to your age group. This is only a guide, and you should consult your financial manager prior to undertaking any large investments.
No doubt, you've heard that we are facing an economic downturn and are worried about the future. Like most people, you are probably concerned about your job future and have pushing long-term goals down on your list of priorities. Don't - the best way to survive lean times is to have savings set-up that help you to manage your finances.
Unfortunately, we can no longer depend upon Social Security to carry us through our golden years. More and more, governments are pushing the onus of caring for themselves through old age back onto the people. This burden opens opportunities for the savvy consumer though. Through smart investing and discipline you can lead a life of luxury instead of merely surviving your old age.
It is more important to begin investing small amounts of money right away, then to try and save up a large amount. Remember that most retirement plans are built on compounding the interest, so the longer your money is in play, the more interest you will earn.
You can read the whole article to see all of the options available to you, or you can skip to the section that deals directly with your stage of life.
You are 20something: Your whole life ahead of you, who wants to think about retirement. If you want retirement saving to be as pain free as possible; you do! The decisions you make as you enter the world on your own will set the pace for the rest of your life. Work on becoming debt-free, pay down student loans, choose a cheaper car and do not party away all of your money. For people in this bracket experts agree that the best course of action is to use IRAs and 401k plans set with automatic contributions. If funds are taken directly off your check, you won't even know that you're missing anything.
30s: As you start to earn more money increase your 401k and IRA contributions, increasingly slowly is a painless way to improve your future position. Invest in blue chip companies with proven track records. Stocks come with a risk, but now is the best time to take chances. As long as you are prudent, you should be able to recover from any loses.
40s: You still have time to build that nest egg, so don't worry. Max out your IRA and 401k contributions. Look through your portfolio and make sure you do not have too much money invested in any one place. The idea now is to begin decreasing your risk, while earning as much as possible. Consider selling some of your stock holdings and invest in bonds.
Over 50: Seek the assistance of a financial planner. They have experience and knowledge that will help you to reach your goals. Find out exactly what you are entitled to through the government and past/current employers. And be honest when assessing your financial picture. You may have to delay retirement, or look for other work if things aren't as you would like them. - 23217
No doubt, you've heard that we are facing an economic downturn and are worried about the future. Like most people, you are probably concerned about your job future and have pushing long-term goals down on your list of priorities. Don't - the best way to survive lean times is to have savings set-up that help you to manage your finances.
Unfortunately, we can no longer depend upon Social Security to carry us through our golden years. More and more, governments are pushing the onus of caring for themselves through old age back onto the people. This burden opens opportunities for the savvy consumer though. Through smart investing and discipline you can lead a life of luxury instead of merely surviving your old age.
It is more important to begin investing small amounts of money right away, then to try and save up a large amount. Remember that most retirement plans are built on compounding the interest, so the longer your money is in play, the more interest you will earn.
You can read the whole article to see all of the options available to you, or you can skip to the section that deals directly with your stage of life.
You are 20something: Your whole life ahead of you, who wants to think about retirement. If you want retirement saving to be as pain free as possible; you do! The decisions you make as you enter the world on your own will set the pace for the rest of your life. Work on becoming debt-free, pay down student loans, choose a cheaper car and do not party away all of your money. For people in this bracket experts agree that the best course of action is to use IRAs and 401k plans set with automatic contributions. If funds are taken directly off your check, you won't even know that you're missing anything.
30s: As you start to earn more money increase your 401k and IRA contributions, increasingly slowly is a painless way to improve your future position. Invest in blue chip companies with proven track records. Stocks come with a risk, but now is the best time to take chances. As long as you are prudent, you should be able to recover from any loses.
40s: You still have time to build that nest egg, so don't worry. Max out your IRA and 401k contributions. Look through your portfolio and make sure you do not have too much money invested in any one place. The idea now is to begin decreasing your risk, while earning as much as possible. Consider selling some of your stock holdings and invest in bonds.
Over 50: Seek the assistance of a financial planner. They have experience and knowledge that will help you to reach your goals. Find out exactly what you are entitled to through the government and past/current employers. And be honest when assessing your financial picture. You may have to delay retirement, or look for other work if things aren't as you would like them. - 23217
About the Author:
When looking at preservation of capital, several types of annuities are commonly utilized. An index annuity is frequently picked for growth, and a fixed annuity is often picked for safety.
posted by X - Men @ 5:43 AM
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