Invest Right, Then Retire In Style

It probably goes without saying that most people don't have what it takes to be a financial expert, and would rather not spend too much time watching their investments. But when it comes down to it, you can't afford not to. A financial advisor can help monitor your expenses and your investments then match them up to meet your retirement goals and expectations.

It probably goes without saying that most people don’t have what it takes to be a financial expert, and would rather not spend too much time watching their investments. But when it comes down to it, you can’t afford not to. A financial advisor can help monitor your expenses and your investments then match them up to meet your retirement goals and expectations.

The first step in working with a financial advisor is to visualize what your retirement might look like. This entails projecting your potential expenses as well as deciding how much annual money you’ll require to fulfill that vision. Spending time figuring out the answers to these questions is critical before any financial advisor can help you choose the proper investment balance.

The second step involves building a diversified well-rounded investment portfolio. If you have access to a company 401 (k) plan, you’ll want to contribute the maximum allowed. If you’re self-employed, an SEP-IRA plan allow you to contribute up to 25 percent of your earnings to a maximum of $40,000. Next, tackle non-retirement investments such as trust funds, brokerage accounts, stocks, bonds, and the likes. A good financial advisor will help you diversify your investments and ensure that you are not investing too aggressively or passively, depending upon your age and situation. Many financial advisors argue not having more than three to five percent in any one stock and selling any money-losing investments. Finally, it is important to save as much and for as long a time period as possible. You may not think you have the extra funds, especially when you’re young, however in many cases, the right financial advisor can help you find that cash.

How Can I Find A Financial Advisor?

Finding the right financial advisor can make all the difference in the world. Of course you’ll want to find one that has proper credentials, a good reputation, and understands your situation. But beyond that, it’s important to find one who is really willing to understand your specific needs, goals, and dreams. Many financial advisors have great investment ideas, but that doesn’t mean they’re right for you. Remember, by investing properly today, you can retire in style tomorrow.

Posted on May 26, 2006 at 5:43 PM

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