Retirement 101

  • 040114
  • 2 minutes

When investing for retirement, the idiom “More is better,” definitely rings true. However, much depends on personal finance, goals, and financial variables. Let’s negate the negative and work toward a solid retirement. Follow us through the wonderful world of retirement planning.

It's a given, there's risk in investing. This includes the possible loss of principal. Which brings us to the other truism—no pain no gain. Even if nothing is lost, the risk itself can be painful. Options abound, from 401k and IRA, to stocks, bonds, and mutual funds. FNA financial advisors now offer you their abridged advice on retirement investing:

Read More Into It

Quick tip: When investing, read, re-read, and why not read again. All you need to know can be found in the fund’s prospectus; A fancy term for a fundamental document. If difficulties arise, give us a call, we can translate.

Paperwork read, now personal circumstances come into play. When and at what age you plan to retire is the biggest determining factor in how much you should save. Whether early or traditional, your retirement decisions now will likely be supporting up to 30 years of living. Perhaps less if your pension plan or Social Security benefits offer hefty sums, or if part-time employment is figured into your “retirement.”

Each scenario requires a very different focus. Take time to dwell on what unexpected life events, financial demands, etc. may enter the equation. By starting with the basics, and factoring in ‘what-ifs,’ you can generate a more realistic goal for saving and investing.

Reign In Your Buckets

Fast-forward to your departure from the working world. With smart, varied investing you’ve built up a sum that you’re confident will support you for decades, come what may. Now to decide how to draw from that reserve. A basic approach to this conundrum has less to do with a prospectus, and everything to do with buckets.

Regardless of your stage in life, you will always need funds for growth, income and safety. By dividing your assets, and diversifying amounts and investment risk, these various “buckets” will each serve to fill a need, either short- or long-term. The underlying goal: Leave no bucket empty. A sound investing strategy will fund your security and peace of mind. FNA advisors will eagerly explain the details.

Here’s the bottom line. Investing early and making the most of contributions is all the difference. Taking advantage of tax deferred and employer matching options does a lot to build your bottom line, and eventual cash flow. And with several “buckets” holding varying amounts of differing investments, you can rely on that flow for years to come.

Now let’s get to planning. Considering your goals, personal finance and circumstances will determine your path. Your situation is unique, likewise the investment strategy that works best. The bucket approach is just one way to get a concrete number behind retirement needs. Any FNA financial advisor can shed light on your situation—sound financial advice is but a phone call away.

Securities offered thru Sterne Agee Financial Services, Inc., member FINRA/SIPC. Advisory services offered thru Sterne Agee Investment Advisor Services, Inc. Securities and advisory activities supervised from 4407 Belmont Ave, Youngstown OH 44505, (800) 589-2023.