Financial Investments for the Future

Not everyone gets excited when they hear “401k” or “stock mutual funds”.

But by taking a hands-off approach, many end up missing out on incredible opportunities to build their wealth over time and create security for the future.

It’s never too late to begin investing, but the sooner we start building, the better our return on our investments can be, so don’t let fear of the unknown keep you from taking advantage of maximizing your money.?

5 steps to build retirement savings:?

1.?????Contribute enough

2.?????Use the right accounts

3.?????Increase savings over time

4.?????Diversify and rebalance regularly with an advisor

5.?????Don’t quit!

Contribute enough:

Contributing 10-15% to retirement accounts is typically the “sweet spot”. This can allow for optimal growth and usually allows for any lifestyle changes that may come in retirement. Depending on the level of income and any existing debts, this amount may or may not be feasible, but it’s certainly a good goal to strive working towards.?

If it is not possible to contribute 10-15% per month to retirement, simply put in as much as currently possible. Be mindful of any match programs through employers and consider cutting unnecessary spending. We tend to think that if we can’t contribute the whole amount, we shouldn’t bother contributing at all, but that’s the exact OPPOSITE of what we should be doing.?It can take some practice and determination to let go of that mindset when looking at investments, but even small steps can make a huge difference in the future.

Use the right accounts:

Knowing what type of retirement accounts exist and the benefits they offer can make investing easier. For example, traditional 401(k) accounts utilize pre-tax income to build savings over time. Different accounts have different benefits, but knowing which ones are available and how to take advantage of their features can help to increase savings exponentially.

And speaking of taxes…double checking tax contributions?may enable you to find more money that could be set aside for retirement. Anyone?receiving a refund of more than $1,000 last year should be modifying their taxes to keep more of that money in their control throughout the year. It can be working more efficiently by building interest in a retirement account rather than lending your money, interest free, to the government!

Increase savings over time:

Increasing the amount contributed to retirement savings over time can add up quickly. We often forget when our income increases, our contribution to savings and retirement should also increase.

A simple 1% difference can build more wealth as the years pass, so don’t forget to increase contributions as your income increases.?

Diversify and rebalance regularly with an advisor:

A well-diversified portfolio can reduce instability regardless of market fluctuations. Utilizing the help of a financial advisor to diversify and rebalance an investment portfolio is a smart idea. There are many ways to alter different stocks and retirement accounts to get the best possible returns, so getting it right sooner rather than later can greatly impact the long-term.?

Advisors should be rebalancing or adjusting your portfolio on a regular basis to bring your asset allocation back in line with your financial goals. Over time, rebalancing can better keep your portfolio in line with your investment goals – providing more security overall.

Don’t quit!

People are hard-wired to avoid risk through fear. Fear is a trigger in our mindset to stay safe and decrease any chance of physical or emotional harm. This avoidance of risk – without the right guidance – can have a negative impact on our investing decisions as market changes can tempt us to change course in ways that won’t serve us in the long term.?

Traditionally, we’ve seen better outcomes in?accounts that remained steady and stuck to the plan rather than making decisions based solely on recent market movements.

It’s not too late?

The most important part of investing for the future is to begin. It doesn’t matter at what age or what net worth, starting is the hardest but most essential part of preparing and creating security for the future. It’s a significant part of LIVING WELLthy?!

Setting up the right investment strategy for your future can feel overwhelming, but don’t let that hold you back! We’ve got a?free financial assessment?that could be the perfect place for you to begin!

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DawnDahlby.com, Dawn Dahlby and Relevé Financial Group, LLC cannot guarantee performance, and historical performance is no guarantee of future performance. For specific recommendations, please consult with your private wealth advisor and tax advisor.?