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Entrepreneur

Staying on Target in 2019

By Tom Irmen

Most self-employed individuals look forward to the day that they can retire. They look forward to waking daily by the sound of their home’s irrigation system rather than the alarm clock next to their bed.


But like managing your small business, retirement doesn’t just happen. A secure retirement is the result of careful planning, savings, and well-thought out investment strategy for the future. Done properly, it becomes a well-directed symphony. Done poorly, it may require a significant downsizing of your future retirement dreams.

One area of retirement planning that proves to be troublesome for many would-be retirees is just where to invest their retirement savings. Should you seek the advice of a trusted financial advisor, or should you go it alone? Do you have the time or expertise necessary to make your own investment decisions? What should your investment allocations be? How aggressive or conservative should you be? What is your risk tolerance? How much money will you require in retirement? Will you possibly outlive your retirement savings?

If you haven’t already begun saving for retirement, the time to start is today, regardless of your age. Later on you will likely regret each year that you postponed planning for your retirement.

Here’s an easy way to begin. Determine how much money you wish to allocate monthly to your retirement savings and then open up a brokerage account with a reputable investment company like Vanguard or Charles Schwab. Both companies offer Target Retirement Accounts. These are convenient, low-cost investment accounts that are professionally managed by experienced advisors that will allocate your retirement savings into a variety of investment options based on your personal target retirement date. Your investments are periodically rebalanced to reflect existing and anticipated market conditions, as well as your risk tolerance, which typically becomes more conservative as you near retirement. What could be easier?


These target retirement accounts are a great place to start, but keep in mind that there are many more moving parts to a comprehensive retirement plan that only a trusted Certified Financial Planner™ can help you plan for. You’ve worked hard for your retirement dreams. Make your retirement dollars work hard for you.

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