When Saving for Retirement, Don't Get Distracted by Short-term Goals

pen-and-chartWhen investing, it can be tempting to treat each fund like a game and spend all your time measuring whether it met or exceeded your expectations and market averages. But if you’re doing that, you are missing the big picture.

If it’s your retirement you are investing in, the single solid goal that should dominate your focus is whether you will have enough money to retire on, when you want to retire. All too often, people put off the hard number crunching for future versions of themselves to figure out, satisfied with the fact that they are making interest and dividends ahead of the S&P 500.

The farther you are from funding your retirement at 100 percent, the more risks you will have to take to get there on time, and the more money you should be pouring into your accounts each month. As you get closer to your goal, take money out of high-risk investments such as stocks, and place them into bonds. Otherwise, you risk meeting your goal and then dropping back below it — a painful prospect. It’s tempting to think, “So far, so good; why not keep pursuing the same strategy?” But your whole post-career future is way too much to lay on the line. You wouldn’t put your whole pension on a roulette wheel; don’t put it into stocks, either.

To find out how close you are to fully funding your retirement — and how quickly you are approaching this goal — schedule an appointment with a Safeguard Investment advisor today. You can reach us toll-free at 1-877-213-7233 or via email at info@safeguardinvestment.com.

Safeguard Investment Advisory Group