ST. LOUIS, MO (KTVI) - People spend more time planning for a vacation than they do for retirement. Although a vacation is fun, it is only temporary. Retirement, however, is not.
Don Chamberlin from The Chamberlin Group Tax & Wealth Advisors shares his advice on how to plan for the longest vacation there is... retirement.
1. Watch out for high fees
Many people don`t even realize their 401(k)s have fees, such as administration, investment and service fees. All investments have a cost, but to help retirement savings grow to their fullest potential, make sure fees are as low as possible.
2. Diversify your investments
While a 401(k) or IRA is a good start, be sure you have additional savings and investments to tap into in retirement too. Additionally, be sure to diversify investments within those accounts to prevent the negative performance of a few investments from harming the entirety of your portfolio.
3. Assess your risk and adjust your investments.
All too often retirement savers haven`t evaluated their savings and investment allocations in decades. It`s important to update your strategy regularly and re-balance to fit your changing needs.
The sooner you start planning, the better off you will be.
Visit The Chamberlin Group’s website for more information on ideal retirement preparation.