Posted on Apr 15, 2010 05:40:29 AM
Everyone looks forward to retirement. Some dream of traveling to places they’ve always wanted to go but never had the time for, or spending more time golfing and fishing, or going back to school to pursue lost passions. Whether you’re interested in one of these things, a general life of leisure, or if your main retirement wish is to simply be financially secure later in life, it’s never too early to start planning to retire.
There are a variety of investments and investment vehicles to consider with regard to retirement savings. Some of the most popular tax-sheltered investment vehicles are standard 401(k)s, Roth 401(k)s, standard IRAs and Roth IRAs, and more options are available for specific professions and the self-employed.
Additionally, there are a huge number of investment options for what to actually buy when filling up your investment vehicles. You should also keep in mind that even if you fill up your available tax-sheltered retirement funds, you can always use a non-tax sheltered equivalent for investment purposes. One of the biggest investing tips for everyone is to just be sure to take advantage of all the tax breaks from Uncle Sam that you can get.
The types of investments that will be perfect for your retirement will vary based on your specific income, age, risk tolerance and situation, but options range from low-risk bonds to high-return stocks in publicly-traded companies, to buying investment properties.
While each investment option has its own unique set of specific benefits and drawbacks, the two main features to weigh against each other are volatility and stability. Volatile investments are those whose values can swing rapidly from one time period to the next, sometimes without warning, and either up or down. Stable investments, on the other hand, are those that may take more time to get sizable returns from but also aren’t likely to turn belly-up on you without warning. Almost any investment can be made more volatile and less stable by entering and then exiting it within a short timeframe, or, the opposite of that, made less volatile and more stable by buying into and holding that investment for a longer period of time before cashing in. Therefore, an additional important factor you must consider when weighing your investment options to make those retirement wishes come true is what your personal approach to investing will be.
Stay tuned to the Global Advice Center for details about these and more options in new additions to the retirement series, with specific investing tips and information about property investment, stock investment, investment software, how to evaluate your own ideas and more to come! The Global Advice Center is your best resource for planning out your retirement wishes to make sure they come to fruition.
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