We all hear advice from friends and family – the best cure for hiccups, how to make perfect hard-boiled eggs, the new movie to see this weekend. But for important decisions about retirement savings, what we “heard somewhere” might not be the best advice to follow.
Even professional wisdom about retirement savings can seem contradictory. Experts say you should consolidate accounts, yet diversify; plan carefully, but expect things to change. Like so much in life, it’s a matter of balance.
Here are a few do’s and don’ts for sensible retirement savings.
Do calculate your retirement needs. It’s an important step in making your plan.
But…
Don’t assume your plans are guaranteed to yield the results expected. Instead of leaving it to chance, review your strategy frequently.
Don’t have only one retirement investment. Diversify to minimize risk and maximize tax advantages.
But…
Do consolidate enough to have a manageable portfolio. Scattered accounts can make it difficult to balance asset allocation.
Do save regular amounts on a continuing basis. It’s the most important part of retirement planning.
But…
Don’t think of retirement savings as an expense, or incur high-interest debt to make extravagant purchases.
Meet your Representative
At Horizon Trust & Investment Management, we believe in the power of information. We are happy to provide some helpful articles on retirement planning, and we are ready to go a step further. Together, we can develop a well-rounded strategy that begins with your goals and ends with your happy, financially secure retirement. If you’ve changed jobs and have a 401(k) plan with your former employer, you have some decisions to make. Consultations are free of charge. Contact Horizon Bank today.