IRA Investment Decisions – What You Need to Know


The most important thing
to remember when making
IRA investment decisions is that the earlier
you start saving, the faster your money will grow. A dollar well-invested
in your 20s or 30s will multiply much more
by retirement age than a dollar invested
in your 40s, 50s, or 60s. This concept of compounding means that to reach your savings
goal when you’d like to retire, you have to put aside less money
the earlier you start. Starting your retirement savings
program early is the way to go, but starting now is essential
the older you are. The next concept to keep in mind is diversifying
your investment portfolio. It can help you reduce the risk
of loss and maximize returns. This means
spreading your investments over different types
of investments and a variety of firms; “don’t put all your eggs
in one basket.” Look for information
about investments with proven,
verifiable track records by taking advantage of the wealth of information
on the Internet. A steady savings plan, a balanced approach
to investing, and some plain, old common sense can minimize risk and help you arrive
at your retirement with the money you need. If projected earnings
on an investment seem too good to be true, they probably are, and remember, the IRS does not approve
or endorse IRA investments.

Paul Whisler

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