Investment Basics

About Risk

Common Questions

1. Find out how much you’ll need for retirement. Most experts agree that you’ll need 70% – 90% of your pre-retirement yearly income to enjoy the same lifestyle you had before you retired.
2.You will need three main retirement sources: your employer retirement benefits, Social Security and outside savings
3. Put time on your side. If you start saving early for your retirement, you can take advantage of getting "earnings on your earnings".
4. Put off paying taxes on your savings. Take advantage of any opportunities you have to save with pre-tax payroll deductions.
5. Make sure you don’t outlast your money. An annuity can guarantee that you’ll receive monthly income for the rest of your life, even if you live a really long time.
6. No risk, no gain. Keeping your retirement savings only in "safe" investments may help you sleep better now, but could give you sleepless nights during retirement. Invest in some riskier investments to keep ahead of inflation. See Risk Explanation on the next page.
7. Diversify wisely Trying to pick the "best" mutual funds without a strategy for how they fit together is a loser’s game. 90% of your retirement success will be based on getting the right mix.
8. Patience is a virtue. No one has a crystal ball to warn them when the market will fall. Successful investors have a long-term plan.
9. Watch those fees. What you don’t see can hurt your savings. Avoid unnecessary fees, to make sure your money works for you.
10. Find a professional advisor. You’re the customer, so take charge. Understand your rights, ask hard questions and do what’s in your best interest, whenever you are investing.