Below are some basic steps that you can follow to work toward a successful retirement.
Start Saving Now and Learn the Basics of Saving and Investing
Understand the basic types of investment products, like stocks, bonds, mutual funds, exchange traded funds and money market accounts. Each of these has their own risks and rewards. Retirement plan participants should know how the various products can fit together in an investment portfolio. Plan participants should also have a firm grasp on what their retirement plan offers and how they can benefit from the plan.
Avoid Common Mistakes
Not diversifying, not re-balancing asset allocations, becoming too emotional, and not having an investment plan are all common errors that people sometimes make. The best way to avoid these mistakes is by starting with the last item on that list, an investment plan. Developing a sound investment program could be one of the best paths to retirement, and we are happy to help you develop your plan.
Focus on Three Critical Components of an Investment Plan
While some things, like bull and bear markets, are beyond your control, there are three things you do control: when to start saving, how much to save, and when to retire. Starting sooner and saving more have much more to do with a successful retirement than the actual returns of the investments. Deciding when to retire is crucial. Delaying retirement means more time for investments to potentially grow.
Monitor the Plan and Adjust as Necessary
A strong investment program should evolve as your circumstances change. Changes in income, new family members, financial windfalls or setbacks, or any other major event in your life should trigger a financial review to make sure you’re still on track for retirement.
If you have any questions or would like to review your personal plan, just give Redfield Financial a call. Their number is (616) 447-1600.