5 Ways to Invest Your Retirement Savings

For many, retirement is in the distant future. That is, until it slowly creeps up on us. Figuring out how to raise enough funds can be intimidating, and no one likes the task of managing their own money. But, the ability to live a comfortable life post-retirement is up to one’s self. 

Your future depends on your actions now, and in the future. What’s more, the world of investing and expanding your nest egg can seem confusing, and many of us can agree to not being money experts. But, for a simplified and manageable approach, follow our 5 steps.

1. Use Your Age to Decide How Much You Should Invest Stocks

The longer the time your money spends in the stock market, the higher returns you can make. This fact has been proven true over time, but you should still have caution when you are investing as it doesn’t always go to plan. You’ll potentially be gambling your retirement funds, so it’s best not to keep all of your eggs in one basket.

There is a general rule of thumb you can use when deciding how much of your portfolio you should invest in stocks. The formula is: subtract your age from 100, then invest the remainder as a percentage in stocks. However, now that Americans are living longer, some experts suggest that you should use 110 or 120 in the equation instead. By investing more of your portfolio, your money will stretch further, so pick an equation that best suits your lifestyle. While it’s impossible to estimate, if your health suggests that your life expectancy is going to be higher, use the larger numbers, instead.