Tips for investing for retirement years

It is never too early, or too late, to begin planning for your retirement years.

08:51 24 December 2013

There are many different investment opportunities available, but the closer you are to retirement, the more attention you need to give investments. You have a shorter amount of time to recover from any losses, and a shorter amount of time to generate earnings. The earlier you begin saving for retirement, the easier it is to reach your ultimate savings goal. Here are a few tips to help you reach your goals.

• If you are unfamiliar with the various investment opportunities, take the time to sit down with a financial advisor and use any available resources to research the options.

 

• Most investment advisors will tell you to “diversify” or have a variety of investments. This typically means having an investment with slower, but steady growth to offset your higher-risk investments, yet overall have the potential for better growth.

 

• Pooled funds may allow you to achieve better overall returns because the fund managers are able to pool your investment funds with those of other clients’ to choose more secure funds with higher rates of return.

 

• Remember that long-term investments typically provide the best return, and do not be afraid to invest in stocks or shares. These are usually the best ways to generate financial growth, and a little bit of a loss is not a big deal. Keep your funds invested over a long period of time so you do not need to worry about the market from day to day.

 

• If you have a fund manager for your investments, you will probably be assessed a fee for the service. Some companies will allow you to manage your investments, but if you are more comfortable with a knowledgeable professional managing it, you will have to pay for that. Fees are usually assessed and paid from the earnings on your investment, and should be reflected on statements.