Even though you mind be young, and retirement age seems a whole lifetime away you still have to start saving and investing now.
Unfortunately with the present economic situation and the rise in the cost of living, saving and investing for your retirement has become more difficult. Your company might offer you a retirement plan in which you can save monthly from your salary. But are these plans safe? After recent events people are not so confident anymore. Don’t worry however; you still have other options available.
Why not invest in the stock market? You may choose between mutual funds, bonds, stocks and shares and other money market account. Even though these don’t have the retirement label attached to them, it doesn’t mean they are not worthwhile. You just need to be patient, choose the best option and let your money grow over time without withdrawing.
Depending on social security is a big mistake. You should take care of your financial future yourself by starting saving now, before it’s too late. Don’t count on inheritances that might never come!
You should examine how able you are to take risk, and what investment choices best suit your risk profile. There are so many investments which however finally all funnel down into three categories, which are cautious, medium, or aggressive investment options.
If you have a high risk tolerance level, than you can go for the most aggressive and volatile investments such as high risk shares. Normally we say that the younger you are, the larger the risk you can take, when it comes to retirement investments, since you have a long way to go.
Once you determine your risk tolerance level, you should move to researching the investments that you want to go for. If you do not feel sure about this, then don’t forget it is money you’re dealing with at the end of the day, so better seek the services of a qualified advisor, who will be able to guide you along the way.
Reference: http://projectstocks.com/2009/06/investing-in-your-retirement-future-let-your-money-grow/
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