Retirement Investment Strategies – Overview


Investing for retirement is one of the most important things you can do today.

Through the power of compound interest, having sound retirement investment strategies earlier on in life can help ensure that you have comfortable later years.

Retirement Investment Strategies - Overview

Image source: Bigstock



Top 10 Retirement Investment Strategies for Your Retirement

Below is 10 top retirement investment strategies that you should start thinking about as soon as possible.

Retirement Investment Strategies

Take Risks Early – Retirement Investment Strategies #1

The closer you get to retirement, the less risks you can afford to take. Once retirement finally comes, you need to have your money available to you to cover expenses once your regular paycheck stops.

However, taking a few risks by investing in slightly more high-risk high-reward investments when you’re younger can pay off by increasing your nest-egg early.

Then, later on in life, you move your appreciated investments to safer, albeit lower interest investments to continue to grow later in your life.

Diversify Your Assets – Retirement Investment Strategies #2

Spread your wealth out across a variety of securities and investment types.

This is one of the most critical retirement investment strategies, because if anything goes wrong with any particular investment, you’re protected against a large-scale personal financial disaster the more diversified your assets are.

Talk to a Retirement Advisor – Retirement Investment Strategies #3

Speaking to a retirement advisor or to a financial advisor or planner is a great way to start planning for retirement.

These professionals are well versed in all of the various retirement investment strategies out there, and can help suggest some that are well suited to your particular situation.



Set Goals – Retirement Investment Strategies #4

The better you can define your financial needs in retirement, the more concretely you’ll be able to figure out how to get there.

Decide what kind of expenses you’re going to need to realistically meet in retirement.

Then, you can deduce how much you need to be investing in your retirement savings to enjoy the lifestyle you want.

Avoid Temptation – Retirement Investment Strategies #5

When you start putting money away, it can be very difficult to stay away from it sometimes.

An unexpected expense, or something that you and your family suddenly decide you want to do or purchase can make that money seem very tempting.

However, to ensure a good retirement, do your best to avoid touching those funds until the onset of retirement.

Generate Income Streams – Retirement Investment Strategies #6

It is nice in retirement to have some cash flow created by your investments.

As you get closer to retirement age, look into retirement investment strategies that include income generating investments such as bonds.

Dividend paying stocks also create a constant revenue source.

Maximize Employer Contributions – Retirement Investment Strategies #7

If you’re lucky enough to work for a company that will match contributions to your retirement fund, you need to take advantage of those programs as much as possible.

Essentially, you’re passing up on free money if you don’t maximize your contributions to any employee matched retirement fund.

Reduce Costs – Retirement Investment Strategies #8

If you’re finding that your retirement investment strategies aren’t adding up, start looking for ways to cut your projected retirement costs.

For instance, if you currently live in a large home that was good for raising a family in, you can consider the option of downsizing.

Moving to a smaller home can sometimes net you some equity that can be reinvested in your retirement savings and can reduce the amount of money you need to meet your housing costs each month.

Sometimes you don’t even need to reduce the size of your home. Moving to a more cost effective location can sometimes net you the same results.



Make it Automatic – Retirement Investment Strategies #9

One of the pieces of advise that most investment gurus agree on is that you have to find a way to pay yourself first.

This means that funds should be going into your retirement account right away, before you start worrying about how to allocate any disposable income in a given pay period.

The best way to do this is to automate your deposits.

Have money come automatically out of your bank account after your paycheck is deposited and move it into your savings.

If you do this, you remove the temptation that money might pose.

Suddenly a few extra nights out or a big screen TV are off the table, because you never see the money in your account to tempt you.

Instead, you get it working for your in your retirement savings before you have the chance to spend it.

Find Ways to Generate Retirement Income – Retirement Investment Strategies #10

Most people don’t want to keep working full-time into retirement, and that’s fine.

But there are many ways where you can put the expertise of a hard-earned career to work to earn a little extra money.

Any money you bring in keeps your balances higher in your retirement accounts, where they money can keep working for you instead of being depleted.

Consulting, teaching and writing are just a few ideas for ways you can make money after the bulk of your career has wound down. 



AdvisoryHQ (AHQ) Disclaimer:

Reasonable efforts have been made by AdvisoryHQ to present accurate information, however all info is presented without warranty. Review AdvisoryHQ’s Terms for details. Also review each firm’s site for the most updated data, rates and info.

Note: Firms and products, including the one(s) reviewed above, may be AdvisoryHQ's affiliates. Click to view AdvisoryHQ's advertiser disclosures.