for eMaxHealthRetirement Portfolio
Invest adequately and regularly, diversify your portfolio, and keep tabs on your investments. According to the Colorado Society of CPAs, these time-tested principles of investing are key to managing a retirement savings portfolio. To help you put these principles into action, the Colorado Society of CPAs suggests that you address the following eight questions.
1. DO I HAVE A PLAN IN PLACE FOR INVESTING REGULARLY?
The key to a successful retirement saving strategy is to make systematic investments throughout your working life. The easiest way to do this is to make saving automatic. If you have an employer-sponsored retirement plan, your contribution may be deducted from your paycheck, so you can save regularly and easily. If you don't have a workplace plan, consider setting up an individual retirement account (IRA), Keogh, or Simplified Employee Pension (SEP) automatic investment program with a bank, brokerage, or mutual fund company.
2. AM I INVESTING FOR LONG-TERM GROWTH?
Just as important as investing regularly are the investment choices you make. Retirement saving means investing for the long term. Historically, stocks have had the best chance of achieving high returns over long periods. Over the years, inflation can erode the purchasing power of portfolios that are too highly weighted in bonds and certificates of deposit (CDs). Keep these facts in mind as you determine the best way to allocate your assets.
3. DO I KNOW MY TOLERANCE FOR RISK?
Risk is the price you pay for potential return. Generally, the more risk you take with your money, the greater the potential return or loss. However, the less risk you take, the lower the potential return and the lower your risk of loss. An honest assessment of your risk tolerance leads to a successful asset allocation strategy.
4. DO I HAVE THE RIGHT ASSET ALLOCATION?
Asset allocation is the cornerstone of good investing. In fact, how your money is divided among the different classes of investments
eMaxHealth welcomes yourcomments and feedback on this story without registration, but keep the comments meaningful please. Links are not accepted.
