5 Signs You're on Track for a Secure Retirement
According to MSN, here are five signs that you are securing your retirement right:
You have a retirement savings goal: This helps you make informed choices about your savings and monitor your progress.
You've planned for the impact of expenses: Health-care and taxes are the biggest expenses, while inflation can affect the buying power. If you forget to consider inflation when setting savings goals, you may feel your projected nest egg is big enough when it really will provide very little buying power. Therefore, keep these in mind.
You invest in tax-advantaged retirement accounts: Have money come directly into your 401(k) or to your IRA on payday. Once you've set your retirement savings goals (taking healthcare, taxes, and inflation into account), determine how much to invest. Automatic contributions for that amount mean you won't have to think about it again. If you can't save the necessary amount right now, invest as much as possible and work up to that goal
You watch your investment fees: Know exactly how much the administrative costs and the management fees are. If your 401(k) has a high cost, or limits you to mutual funds with high fees, consider contributing only enough to earn your employer match and then put other money into an IRA with a brokerage that allows you to buy inexpensive exchange-traded funds (ETFs) instead. And choose a broker that doesn't charge a commission.
You have a diversified portfolio: Some investments will underperform while others will do better than you anticipate.
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