Four Strategies for More Money in Retirement
It’s likely retirement is one of your main long-term financial goals. The following are four strategies we believe may help you save more:
- Control your spending – You can’t control financial market returns, but you can control how much you withdraw from your accounts and your spending. Withdrawal rates should be applied using “the haircut rule.” If the barber doesn’t take enough off, you can always take more off later. But if he takes off too much, it’s tough to put it back. Investors should start with a conservative withdrawal rate.
- Invest more – Investing more can help you potentially increase the size of your portfolio. You can increase the amount you invest by earning more income, or spending less. You can also consider automatically reinvesting dividends and capital gains.
- Have an appropriate asset allocation – Invest enough in asset classes that have earned higher returns over time. The ideal asset allocation for most people is one you can stick with in good times and bad, and that provides a return that can help you reach your long-term goals. If too much of your portfolio is in short-term income investments, you might fall short.
- Control expenses and mistakes – By working to avoid major mistakes and control expenses, you can increase your odds of reaching your retirement goals.
Learn more about how your financial advisor can work with you to develop a strategy to help your savings meet your needs in retirement.
Contact your Edward Jones financial advisor today to determine if your investment strategy is on track.
Past performance does not guarantee future results. Edward Jones does not offer tax or legal advice. Please contact your tax or legal professional for more information.
