Are you looking to start saving money for retirement? There’s no time like the present to build a nest egg. With a few key tips in mind, you can put yourself on a path toward retiring comfortably.
Keep reading to learn about a good retirement investment strategy!
Start Your Retirement Investment Strategy Early
By investing early, you can take advantage of compound interest, which is interest earned from interest. In other words, the beauty of compound interest is that it helps your nest egg grow more quickly. So start investing early!
If you have even a few hundred or a few thousand dollars that you can stash into a retirement account, it’s worth doing that as early as possible. You could end up with a lot more money by the time you’re 65.
Invest For the Long Term
Knowing how to invest for retirement means being patient. When you start to see returns on your investment after a few weeks, you may be tempted to withdraw money and start spending.
You might want to resist that temptation. You’ll make more money if you keep the money invested for as long as you can. Have enough money in your checking account that you can access for daily needs, but avoid touching the money you designate as retirement savings.
The More You Save, the More You Can Invest
Many experts recommend saving 20% of your monthly income each month. If you get a new job with a higher salary or find yourself with excess money to burn, stash it away — don’t spend it. The more money you can save, the more money you can invest in an account where it can grow.
Do the Research
Before you get started moving money around, put in some time to understand what you’re doing. Read up to know which IRA is a good choice, or what equities and bonds are best for your investment goals. Know what a brokerage account is, and also make sure that you talk with your significant other about retirement goals.
Randomly funneling money towards accounts that are not diversified is never a good idea. When in doubt, talk with a Quest Trust Company IRA specialist to make sure you’re clear about how your money can grow.
Take Advantage of Workplace Retirement Savings
If your company has a 401(k) matching program, make sure that you are enrolled. For example, if your company offers a 4% match, that means they will contribute 4% of your income if you do the same. That translates to 8% of your income going into a retirement account.
This is an easy way to start saving, and if you use it in conjunction with another account, you’ll be in good shape!
The Bottom Line
Make sure that investing is a priority in your life. If you want to have a comfortable retirement, it’s critical to get your money working for you. And with a little belt-tightening and a retirement investment strategy, you can do it!
When you’re ready to start learning how to invest for retirement, contact us to open a Quest account and we will be happy to help you!