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Six Retirement Investment Strategies That Actually Work
forbes.com

Investing in and retirement calls for a focussed outlook. Typically retirement funds are not getting added to and at the same time the available funds have to deliver adequate returns with lower risk over a longisg period of time. Take a look at the pointers provided in the article below. Team RetyrSmart

Six Retirement Investment Strategies That Actually Work

It's no secret that our current economic situation on a global scale is in turmoil. Home prices and costs of daily living are drastically rising while incomes fail to keep pace.

This has left many people struggling financially, with no ability to prepare for retirement. Bloomberg recently found that two-thirds of Americans are not putting any money in their 401(k). Of the 33% that are contributing to a retirement plan, only 28% were "very familiar"with the investment options in their plans.

If you want to retire comfortably, you just cannot fall into either of these categories. If you do fall into these camps, you need to rethink your investments.

Lucky for you, we're here to help. Below, we've compiled a list of the six best retirement investment strategies.

Diversifying Your Portfolio

So often it becomes tedious to hear, but I need to reemphasize: When it comes to retirement, you don't want to put a lot of your money in just a few stocks and assets. It makes your whole portfolio vulnerable to volatile swings in the market, and you could potentially lose it all.

For example, you could put all of your retirement money into Facebook stock, but if public opinion turns against Facebook, as is currently happening, and the company eventually goes under, you will lose all of your money.

By fanning out your money and investing in a lot of different markets, stocks, funds or real estate, you will safeguard your nest egg against market volatility.

Picking An Index Fund

A great way to fan out your investments is with an index fund. An index fund is a mutual fund in which you place your money that grows with a broader index of the market, like the S&P 500. Using the S&P 500 as an example, an index fund would set a certain percentage of your money in all of the individual stocks in the S&P 500.

There will be far more stocks over which to spread your money, widely diversifying it between blue chips corporations and smaller stocks with great potential (but higher risk). If, for example, Apple stock tanks, your money still won't plummet significantly. And, over an extended period, most index funds are profitable.

The trade-off for your relative safety may be a smaller return on investment, though.

Picking Low-Cost Funds

This is one of the most underrated investment strategies out there. Regardless of whatever funds you decide to put your money in, there will always be annual management fee. Typically, this fee is a percentage of the funds in your portfolio. ...