|
Retirement Quick Tips
Diversify Your Investments!
Simply put, diversification reduces the volatility of
your portfolio. With diversification, you can earn the same
rate of return that a single investment can provide with less
volatility
Save Now!
The sooner you start investing, the more time you
have to earn and the more risk you can absorb. By starting
to invest $200 a month at age 30, you could have $1,000,000
by age 65. If you wait until you are 35, you will have $740,000.
That's a $260,000 penalty for waiting just five years!
Avoid Timing the Market!
Successful investors realize they can't predict the stock
market. They put their money to work on a long-term basis,
no matter what the market is doing, because they know in the
long run it's not when you invest, but that you simply do
invest.
Use Mutual Funds for Your Taxable Portfolio!
Mutual funds are outstanding investment vehicles. They
give you access to professional management, help diversify
your portfolio, and provide liquidity.
Make the Most of Your Investments!
The faster the rate at which your money grows and compounds,
the less you need to save each year to reach your goals!
Invest in U.S. Stock Index Funds!
U.S. stock index funds enable you to match the performance
of the U.S. market. Why is this significant? Over the last
ten years, the return of the S&P 500 Index (an index of
500 large U.S. company stocks) outperformed over 80% of all
actively managed U.S. stock funds.
Pay Your Credit Card Bill!
Paying only the minimum monthly payment of your credit
card bill will swing you off the road to retirement. Successful
planners never pay interest on their credit card debt.
Avoid Casino Gambling and Lotteries!
The house always wins. Casinos, lotteries, and
other gambling establishments are no-doubt-about-it losers
for you. The odds are built in so your hard-earned wages go
directly to the casino owners and the government.
Have Fun!
It is important not to get caught up in the daily, even
weekly swings of the market. Check your investments on a monthly
or quarterly basis…and enjoy your journey toward retirement!
|
