Retirement Investing – Peace of Mind in Uncertain Times

The next generation of retirees faces longer life spans and a more uncertain landscape for retirement investing. Most likely, you’ll need to take care of yourself longer than your parents did, and at a time when investing for retirement is as risky as it’s ever been.

To enjoy that extra time in safety and comfort, you may need to think harder, and more inventively, about how to approach retirement investing. Having clear – and personally meaningful – expectations about your retirement is as important an investment in your peace of mind as a sound stock portfolio.

Retirement Investing – Money is a Means

Before we look at today’s uncertain financial landscape, it’s important to remember what it’s all about. One of the things is to think hardest, and most inventively, about what it is that you actually want from your retirement. You put a lot of planning and dedication into your career and you should be just as passionate, and sensible, about retirement. Investing in retirement means more than securing the right amount of savings; it means knowing what you want from your retirement – which will help you plan your financial needs more effectively.

Think carefully about what your spending in retirement will look like. Consider creative solutions. One of the most challenging current realities around investing for retirement is that you may need to work longer – but if you plan it right, investing time in part time work can be very rewarding, and it can help shape your post-career years in a fulfilling way. An important part of investing for retirement is putting effort into thinking clearly and creatively about how you actually enjoy spending your time – and how much money you’ll actually need to spend to do those things.

Retirement Investing – Risks and Realities

No matter how well you invest, and no matter how well the market recovers from its current crisis, you will need to be prepared for at least some impact on your investments from inflation. Even if your portfolio is safe from losses, that's no help if it doesn't keep up with the rising cost of living. One safe option is Treasury Inflation-Protected Securities, or TIPS, which are bonds issued by the federal government that are guaranteed to keep pace with increases in the government-calculated consumer price index.

When thinking about stocks for retirement, diversification is one way of investing in retirement that will keep your portfolio growing while keeping risk minimal. Sensible retirement investing requires careful thought about a diverse range of topics, which we cover in more detail elsewhere on the site: retirement mutual funds; retirement bonds; retirement mortgages.