Tips for Retirement

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  • A Powerful Force

    The most powerful force in the universe is compound interest.” Even if Einstein didn’t actually say it, the point is still clear: start saving early. You can do it. There’s no substitute for time.

  • The Idea

    Invest aggressively in higher-risk, higher-return stocks when you’re younger and have time to ride out the volatility of the market. Gradually transition to lower-risk, lower-return investments (like bonds) as you near retirement.

  • Portfolio Planner

    If you have more to invest and want active management, a portfolio planner may be advisable. (Keep in mind the fees that come with a planner.) Otherwise, look into lifestyle or target retirement funds that shift your assets as you age, ensuring that your portfolio has the appropriate mix of investments at each stage of your life.

  • Online Investing

    Because of their lower maintenance costs, online investing sites may offer higher interest rates for your cash holdings than companies with brick-and-mortar stores.

  • Online Resources

    You can visit the websites of companies such as Fidelity, Vanguard, and T. Rowe Price to find numerous resources and open accounts.

  • Max it out

    Max out your employer’s 401(k) matching contributions every single year!

  • Low Tax Rate and your Roth

    Contribute to your Roth IRA in years when your tax rate will be relatively low.

  • Tax rate high and your Traditional IRA

    Contribute to your Traditional IRA in years when your tax rate will be relatively high.