When it comes to stocks, I bet you feel like you have no idea what you’re doing.
Everyone who’s not a financial expert has been there. I’ve been there. But, time is passing and you need to be crystal clear with how you’re investing for your retirement.
Otherwise, it’s back to work until you can afford not to. So, how can you invest for retirement when you’re not a financial expert?
You take the time to learn the fundamentals well. If you do, you can grow your wealth and retire happy. The best part is that you don’t need to be a financial expert to make smart investment decisions.
Here’s how to invest for retirement the smart and stress-free way:
1. Know Clearly Why You Invest
Odds are you already know why should invest for retirement.
But, maybe you know the wrong reasons. It’s time you get clear on why you’d like to retire. Here are some questions to help you get started:
- Will you spend more time with your family?
- What does retirement mean to you?
- Are you looking to launch that business you’ve been holding off for years?
Everyone wants to retire but not for the same reasons. Once you’re clear for why retirement is important for you, you’ll focus on making it happen.
Investing in the stock market allows you to take advantage of compound interest. All this means is that your money earns money on top of its interest. A reason why investment in the stock market is one of the best ways to plan for retirement.
2. Figure out When to Invest
“The best time to plant a tree was 20 years ago. The second best time is now.”– Chinese Proverb
It’s true if you’d had started investing when you were 10 years old, you’d have a lot more money than you do today.
The reality is that most people don’t start investing until it’s too late. So, if you’re currently waiting for the perfect time to start an investment, it would be today. Open your calendar and block out 2 to 3 hours to choose how you’ll invest for retirement.
A quick way to get a snapshot of where you stand is to use Personal Capital. Input all your personal information and spend some time setting your retirement goals. Once completed, you’ll know where you stand with your retirement.
Having a savings account for retirement isn’t planning for retirement. Why? Your money loses value when you factor in US inflation.