It is never too late to get strategic about your retirement savings. Whether you have a private employer pension or other investments, there are some basic principals to optimize your current financial practices to support a comfortable retirement, and this infographic shows how important it is to maintain a focused strategic perspective. Saving money for retirement is habitual, but reviewing your progress and making changes to reflect market influence is key.
One of the great tips provided in this infographic is a reminder for late investors that a diversified portfolio requires some adjustment as you approach your retirement. Investments in more flexible funds (or those subject to greater market volatility) are a good choice for portfolios of individuals aged 20-45. However as you approach the 10-15 year window prior to your retirement, remember to consult with a financial planner that will help you modify your retirement investments to lower risk options. With less time to retirement there is also less time for your funds to recover if negatively impacted by the current market.
It can be hard to find money to invest in an IRA let alone reaching the maximum allowable annual contribution. But the closer you get to contributing your maximum amount the more profitable your retirement portfolio will become. Don’t forget about the added benefit of tax breaks and incentives in place to literally pay you for paying it forward to your self.
Create a positive habit by managing your retirement savings strategically. You owe it to yourself to have the option to retire when you are ready and to enjoy a comfortable standard of living when you are no longer employed. Saving now for the future will pay you back in many tangible ways, including peace of mind knowing that you will be provided for in your retirement years.
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