Only about 18% of American workers say that they are “very confident” that they will have enough money to live comfortably throughout retirement.1 Helping to reduce the uncertainty from your investing strategy is a great way to build more confidence around your retirement outlook.
Avoid these four common mistakes:
The sooner you start contributing the maximum amount allowed, the better your chances of building significant savings. By starting early, you have more time for your contributions to compound over time on a tax-deferred basis.
You have to know where you are going before you try to get there. An effective investment plan identifies a specific savings target and takes into account how much time you have to pursue that goal.
If you have retirement savings in a variety of places, such as in your current employer-sponsored retirement plan, retirement plan from previous employers or a traditional or Roth IRA, consolidating them can help give you a better picture of your overall savings.
You are encouraged to discuss rolling money from one account to another with your financial advisor or planner, considering any potential fees and/or limitations of investment options.
Spreading your money across a mix of investments can help reduce the potential for loss during market volatility. Diversification can help offset losses in any one investment or asset category by allowing you to take advantage of possible gains elsewhere.
Diversification and asset allocation do not ensure a profit and do not protect against loss in declining markets.
This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, investment, accounting, legal or tax advice.
1 Source: Employee Benefit Research Institute, 2016 Retirement Confidence Survey, March 2016
