Finding strength and healthy balance in your retirement plan can be challenging in today’s teeter-totter market.

Here are 4 tips that can help you find the balance you need for your retirement plan.

1. Start small then grow

Gymnasts don’t start practicing on the high beam at first. Rather, they start on the low beam and gain their balance and confidence before they move to higher beams.

If you are not saving for retirement, start by contributing as much as you can. To jump start your savings, consider contributing at least enough to earn the company match. Then each year, increase your contribution by 1% until you reach the maximum.

2. Don’t panic at the tumbles

When you are saving for retirement, you are in it for the long term. Stay calm and don’t let tumbles in the market cause you to stop saving for retirement.

In the CNN Money article “Market turmoil: Is there anywhere left to hide?” author Heather Long talks with Seth Masters, chief investment officer at Bernstein. "Most investors panic during downturns," says Seth Masters.1

Masters says just look at the periods when investors have pulled a lot of money out of stocks. There was massive selling in 2008 (the financial crisis) and 2011 (European debt crisis and U.S. debt downgrade). Taking your money out in either of those years proved to be foolish as the stock market rebounded sharply.“

3. Change your position

The retirement savings goals that you set when you are age 20, 30 and 40 are completely different from when you are age 50, 60 or 70.

Early on you don’t have to be as conservative with your investment choices because you have a longer term to participate in the market ups and downs.

As you approach retirement age, you’ll need to change your investment position to select more conservative investment options.

Or, you may want to talk to your financial professional about a target date investment option. Target date portfolios are designed to coincide with your investment time horizon and the year that is closest to your retirement date. The closer you get to the target year, the more conservative the fund manager’s strategy becomes.

4. The importance of a good coach

Having a coach or a spotter who is knowledgeable and can help guide you through retirement planning is important.

Stay connected with your financial professional to help you to set your retirement savings goals. Consider meeting on a regular basis to talk about tools or changes that may benefit your retirement plan.

Together you can alleviate fear and build confidence to start doing cartwheels towards accomplishing your financial dreams.

The information provided here is for informative purposes only and is not intended to provide legal or tax advice. Should such advice be sought, a competent professional should be consulted.

 

Investment Solutions


In today’s heavily regulated market, tax benefits and investment dividends achieved through retirement plans can be significant. Many plans offer immediate dollar-for-dollar tax savings. But the rules are diverse and complex.

Cosmo Financial’s expert consultants can help you achieve your financial objectives through a host of wealth building investment strategies and a full range of variable products to help complement your current financial position. Call for an appointment at your convenience.

Employee Benefit Programs
Employer sponsored retirement plans can be a vital asset to your company as well as your employees providing significant tax incentives to save and invest for retirement. Cosmo Financial works closely with both small and large employers in the corporate and non-profit sectors to identify the proper plans for your company. Our broad range of programs include:
401Ks
Profit-Sharing Plans
Simple IRAs
SEP IRAs
Reach out to us, and we’re glad to talk!

 

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1 Source: CNN Money "Market turmoil: Is there anywhere left to hide?" 6/14/16

Posted 10:00 AM

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