Five Keys to Investing for Retirement

It’s Never Too Early (or Late) to Secure Your Family’s Future

1. Don’t lose ground to inflation

It’s easy to see how inflation affects gas prices, electric bills and the cost of food; over time, your money buys less and less. But what inflation does to your investments isn’t always as obvious. Let’s say your money is earning 4 percent and inflation is running between 3 percent and 4 percent (its historical average). That means your investments are earning only 1 percent at best.

2. Invest based on your time horizon

Your time horizon is investment-speak for the amount of time you have left until you plan to use the money you’re investing. Why is your time horizon important? Because it can affect how well your portfolio can handle the ups and downs of the financial markets.

3. Consider your risk tolerance

Another key factor in your retirement investing decisions is your risk tolerance—basically, how well you can handle a possible investment loss. There are two aspects to risk tolerance. The first is your financial ability to survive a loss. The second aspect of risk tolerance is your emotional ability to withstand the possibility of loss.

4. Integrate retirement with your other financial goals

Think about establishing an emergency fund; it can help you avoid needing to tap your retirement savings before you had planned to.

5. Don’t put all your eggs in one basket

Diversifying your retirement savings across many different types of investments can help you manage the ups and downs of your portfolio. Different types of investments may face different types of risk.


Sandra L. Stoll is First Vice President/ Wealth Management for Scheinker Wealth Advisors of Janney Montgomery Scott LLC. She is located at 145 West Ostend St., Suite 400, S. Baltimore, 21230. Additional members of Scheinker Wealth Advisors are also available to meet at 2800 Quarry Lake Drive, Suite 160, Baltimore, 21209.