Many times I am asked how to invest one’s retirement portfolio. Although I can’t give specific advice, there are some “tried and true” principles that I have found to be effective, even in the unpredictable market we are in.
Valerie RumboughFirst of all, estimate when you will retire. If it is 20 years or more from now, then you can afford to be aggressive with your investment choices. However, when that magic date is around 10 years away, you may want to consider being less aggressive. You don’t have to do it all at once, but slowly, a little each year, move some of your aggressive funds into safer investments.
Consult an investment advisor that can help you make those annual choices so that a market downturn doesn’t catch you by surprise. Many people invested too aggressively than they should have over the last several years, and they ended up having to work several more years than they planned to make up the difference.
Don’t invest in a portfolio that you are uncomfortable with. It would be better to bypass some earnings than to lose sleep at night over your portfolio.
Be sure that you have an investment advisor that you can trust. Check out his credentials. Ask your friends who they trust. Choose someone who has the CFP or other noteworthy designation.
Most importantly, remember that it is not your money, it is God’s. Ask Him what He would like you to do with His money!
– Rumbough, CPA, CFP, is chief operations officer with the Baptist Foundation of South Carolina. Contact her at 800-723-7242. In accordance with IRS Circular 230, any U.S. federal tax advice contained in this communication is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein.