How to Keep Retirement Investing Simple

Investing your retirement savings doesn’t have to be complicated.


One of the biggest misconceptions about retirement investing is that you need to be a genius to get it right. Nothing could be further from the truth. Unfortunately, many people delay or even skip investing because they believe they need to be an expert before they begin investing. Here is how anyone can invest for retirement.

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Start saving, even if you don't know how or where to invest. The first step to becoming a millionaire or otherwise reaching your retirement goals is getting started. Many people become intimidated by the sheer number of investing options and are shocked into inaction. Start by eliminating those investments which aren't appropriate for your needs. Here are some investment strategies for beginners to help you understand the basics.

Investing doesn't need to be flashy to be effective. I don't need a Ferrari to get back and forth from work. All I need is a car in good repair. Investing is very similar. You don't need to read technical charts or understand how binary options trading works in order to be a successful investor. Many investment opportunities are far too advanced for the average investor and need to be left alone. If you don't understand the basics of an investment, then that specific investment probably isn't good for you. Simpler investments, more often than not, will be more effective for first time investors.

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Set up automatic deposits. The easiest way to begin investing is through an employer sponsored retirement plan such as a 401(k). These retirement accounts are set up so you can easily contribute a portion of each paycheck into your designated investment fund. You can often open your account online in about 10 to 15 minutes or by making a quick visit to your employer’s human resources department. If you already have an employer sponsored retirement plan, then consider opening a Roth IRA, which offers great tax benefits. It is also a good idea to set up an automatic contribution to your IRA account each month. This way you never forget to make deposits.

Starter investment options. One of the easiest ways to start investing is to contribute to a target-date retirement fund. These investments are already diversified and automatically invest and allocate your money into stocks, bonds, and other investments based on a target retirement date. These plans work best when they are your only investment because they are diversified as though they are your entire portfolio. If you have other investments or are a more advanced investor, then you can choose among mutual funds, ETFs, individual stocks, bonds, and dividend stocks.

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You can make changes later. Once you get started investing you can make changes based on your needs and risk tolerance as you continue learning and monitoring your investments. You are generally not locked into your original investment choices. The key is to start saving something for the future and then help it to grow.

Ryan Guina is a U.S. military veteran, writer, and professional in the corporate world. He blogs at Cash Money Life and The Military Wallet.