I was reading something the other day that made me stop and think. It was some really good information and I hadn’t thought about it for a while. It’s kind of like when you smell something that you really hadn’t smelled in a long time, and it brings back a memory. I remembered a crucial thing that people investing for retirement need to remember.
You are likely to live a long time!
In fact, if you make it to age 65, you will likely live another 20 years according to the Center for Disease Control. I don’t know how they know that, but it sounds right. If that is an average, that means about half are going to live longer than that. Are you investing like that?
What I mean is many people are being too conservative with their retirement investing choices. We can’t afford to make 3-4 % people! That may not get you the kind of money you need when you are 80 years old. I would suggest being in mutual funds, large cap growth funds that have a track record of 10 years or more making at least 10% per year over that time. I listen to Dave Ramsey a lot, and he makes sense on this.
So the big mistake to avoid is being too cautious with your retirement investments when you are still young. I am saying you are young if you are 55 to 60! Here is what you need to do.
- Review your investments. What do you have? Try to balance your retirement investments in mutual funds that are growth, growth and income, and international.
- Get all your funds together in one place if you can. Something like TD Ameritrade would be a good place to do it. (I use them, and I don’t get paid to say that) By getting all the funds together, you can see what you are doing and can more easily move things around.
- Think again about single stocks. I say don’t invest in them. They are really too risky as the company can go bankrupt. It happened to me, trust me, you lose all your money with no recourse. A mutual fund will be much better for that retirement nest egg. Be sure to maximize your Roth IRA.
So get to it. Get started. Get balanced. Get a little riskier if you have it all in CD’s.
As usual , you know I don’t give professional tax or investment advice. These are just my opinions, and you should seek a professional if you need that advice.
So , what do you think? Let’s hear from you. Are you a risky retirement investor or are you in savings bonds. Let’s talk about it. Leave a comment here for all to see or email me at email@example.com