21 Apr How to Start Investing for Retirement
It’s easy to procrastinate when it comes to investing for retirement, especially when its decades down the line.
Just getting started is half the battle – knowing that you want to make your wealth work for you and realizing the immense value of investing early is an excellent starting point.
Actually figuring out how to invest, however, can appear to be just as tough. Thankfully, there are a few steps any investing novice can take to start building their nest egg today.
Use a 401(k) match
If your employer offers a 401k with a match, it’s essentially free money on the table.
401(k)s already allow your wealth to grow and compound tax free, and they aren’t taxed when initially invested. When coupled with your employer (partially) matching the money, it can provide immense value for your golden years. Consider investing up to the full match, and then leaving your wealth invested so it has plenty of time to grow.
Open an IRA
Now that you’ve taken advantage of your 401k, a Roth IRA is an excellent way to continue investing for retirement. Since it is a tax-advantaged investment, it allows your wealth to grow and compound tax-free. Your investments are initially taxed, allowing you to also make withdrawals without taxes in retirement. And, you will typically have access to a wider range of investment opportunities with a Roth IRA than with a 401(k), where your employer pre-selects a few choices.
Open an investment account
Investing in a well-diversified account over the long-term can be immensely beneficial when investing for retirement. Because you have a longer-time frame, you can ride out the ups and downs of the market for long-term success. By being patient and sticking to your long-term retirement goals, you’ll be able to see years of growth with your nest egg before retiring.
Although there isn’t a one-size-fits-all strategy, you can invest in a blend of stocks, bonds, and hard assets that are right for your needs, goals, and risk tolerance.
Learn more about how to start your retirement plan
At LexION Capital, we provide bespoke investment solutions tailored to each client’s specific needs and goals, so they can have a worry-free retirement. We are an independent firm solely focused on finding the highest quality and lowest cost investment solutions to meet your goals
If you’d like to know more about how we can help you retire, get in touch with one of our fiduciary advisors today.