Three Things That Can Make or Break your Retirement Savings Sponsored By:Rick Viader

Saving for retirement isn’t a one-time thing; instead, it usually takes decades. It requires little behaviors repeated continuously over time to help you accumulate a sufficient cash stash. According to Ken Hevert, senior vice president at Fidelity Investments, funding your dream retirement will require adhering to some budgeting habits over time.

It requires committing to regular savings, whether it’s a specific percentage of your paycheck or a specific amount to reach your goals.  

If you look at the market today, you’ll see that the pattern of market performance is similar to what we have seen in the past. The market tends to return a substantial amount in a short period; hence the vital thing is to first; have a plan, ensure that you are comfortable with your plan, and continuously rebalance your portfolio when necessary.

The difference between those who can achieve their goals and those who aren’t will come down to three things:

Regular saving: been able to commit to saving a specific percentage of your pay or a specified amount each month increases your chances of achieving your retirement investment goals.

 

Asset allocation: there’s a lot of talk about ensuring your portfolio is diversified, but the reason why asset allocation is so important is that various asset classes tend to offset each other over time. So by having a portfolio that, for instance, includes bonds, stocks, and cash, allows you to be able to continue to grow your money while protecting yourself in case a particular asset crashes. Your asset allocation should be based on your specific situation since we all have different risk tolerance levels. 

 

Account type: the type of account you choose. Whether you are saving for college or retirement, taking advantage of tax-deferred accounts like the 401(k) plan, Health Savings Account (HSA), Individual Retirement Account (IRA), or 529 college savings plan will put you in a better position.