Expert Advice: Investing
At the beginning of each new year, people should develop a plan to revamp their investment strategy to make sure they are receiving the biggest return on investment. That sounds like a great idea, but in reality, many consumers fail to create a plan and gain a better understanding of financial risks and how these may have long-term effects on retirement savings.
Regardless of your financial goals, you should always have a plan in place on how you are going to get there.
All too often we do what we think we should be doing without doing the research or developing a plan. Therefore, in 2020, your resolution should be to have the following goals when it comes to your finance and investments:
Set a goal and establish a plan.
Identify an accountability partner (spouse/parent/ financial advisor) who will help you execute and stay on track to hit your goals.
Follow through.
Based on different stages of life, here are some things you should consider in 2020:
Early Saver
Ages 20-40
These are the years to create good habits:
Make your savings a priority rather than spending first and saving second.
Understand the power of compound interest.
Determine what type of investment account is best for you.
Develop an asset mix that is appropriate for your age and risk tolerance.
Remain committed to your plan.
Working Years
Ages 40-60
These are the highest income earning years of your career, and the most vulnerable to make meaningful financial decisions good or bad
Set goals and establish a plan to achieve them.
Continue saving first, and spending second.
Understand being a tax efficient saver.
Maximize retirement savings.
Work with a financial advisor to ensure your asset mix and risk tolerance is appropriate for your timeframe and goal.
Don’t become an emotional investor.
Retirement
Ages 60+
During this time, you need to make smart investment decisions to minimize risk and maximize return.
Work with an advisor to build a retirement strategy that is right for you well before your retirement date.
Prioritize what is most important and what you plan to do in retirement.
Re-evaluate your investment strategy and risk tolerance.
Stress test your portfolio for major life events such as pre-mature death, long term care and extensive travel.
Understand inflation and how you plan to keep up through retirement.
Eric Hunsicker, CLU
Agent
Kansas Financial Resources
Securities offered through Securities America, Inc., member FINRA/SIPC. Advisory Services offered through Securities America Advisors, Inc. Kansas Financial Resources, Inc. and Securities America are separate companies.