If your investment advisor is following a fiduciary standard, then they are legally bound to give you advice that is in your best interests and fits your specific needs — it’s all about you! This includes sensible and strategic advice that you should consider taking to heart no matter where you are in working towards your retirement goals. Some of these include:
- Beware of penalties on early withdrawals.
If you decide to pull out a sum of money before full retirement age, you will likely take an extra 10% hit on your withdrawal, which cuts into your assets on hand. For IRA’s that penalty comes with withdrawals before age 59 ½, and for a 401(k), the penalty would take effect with a withdrawal before age 59 ½ unless you separated from your company in the year that you turned age 55 or older.
- Utilize a variety of assets to manage risk and preserve wealth.
When building a portfolio, it’s important to utilize investments that have a low correlation to each other. That means if one type of investment loses value, it likely won’t have a significant impact on the other asset classes in a portfolio, and will help keep the investments balanced. The key is to build on the strengths of each class and manage the shortcomings. This approach can be designed to seek consistent performance to optimize your wealth accumulation strategy.
- Implement a plan to increase your personal savings.
Just as you can take advantage of an employee-sponsored plan to increase your retirement savings, make sure to stay disciplined and contribute a set amount each month to build your personal savings account. Compounded interest can enhance your contributions and in the long run, can be a nice addition to your overall retirement income.
If you have questions about investing strategies or devising a sound retirement plan, visit us at mooneylyons.com. You’ll find timely and relevant information to help you plan for a confident financial future.
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. No strategy assures success or protects against loss.