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The Future

Saving For Retirement

What are some strategies I can employ that may help me reach my post-retirement income goals?

Aside from the commonly held belief that you should begin investing for your retirement early on, in order to grow your money in early years, it is generally accepted that you should invest your money in equities (individual stocks or equity mutual funds), and manage your portfolio so that you may mitigate risk through proper diversification. In the medium term—and perhaps even during our retirement—you may require certain types of investments that produce income, such as interest-producing bonds or even dividend-paying stock investments. For more astute investors, purchasing bonds that have certain expiration dates is a prudent method to generate income during retirement. As the bonds mature, and the bond is paid to the bondholder, income is generated. As we reach our retirement years, many prudent investors look to investments that grow, but are of a more conservative investment type, as the cash alternative may erode because of inflation. This may be one of the biggest threats to maintain enough capital to fuel your retirement needs.



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