Investment Check: Are You Ready for Retirement?

Investment Check: Are You Ready for Retirement?


Investment Check: Are You Ready for Retirement?

Getting prepared for retirement should start when you’re young enough to afford starting a financial portfolio. One of the main things you should do prior to starting your investments is to make a list of the age you would like to retire, the things you want to do, the standard of living you’d like to maintain and how much money you will need to get there. Once you’ve done that, you can evaluate your income, make conscious decisions and get the most from your contributions. Now that you’ve started your investments, making sure you are on the right track is key. Here’s a quick checklist to see where you stand and tips to keep moving forward:

Portfolio Checklist
Ensure that your portfolio reflects where you are in life. Your age makes a huge difference in the types of investments you should be making. The younger you are, the more risk you can take. As you get older, you should move your investments into safer territory.

Make sure your investments are low in fees.

Make sure your investments are diversified. This is a key strategy in maintaining a healthy portfolio. You never want to put all your assets into one place.

Own small cap and value stock.

Use tax shelters to your benefits. 401k plans, IRAs and Roth IRAs should have regular contributions, especially if matched by your organization.

Automatic payments are a must. If you draw a regular salary, automatic contributions will become part of your monthly budget and you won’t miss those funds.

Review your portfolio at least 2 or 3 times a year to make sure your money is working for you. You may have to make a few adjustments. Keep track of your anticipated Social Security benefit every other year to see how that money will affect your tax bracket. As you get older, start planning your retirement budget to determine if you need to save more. Smart planning makes a huge difference in your standard of living once you retire. Good investments can help make your retirement years golden!