Five Keys to Investing For Retirement
M
aking decisions about your retirement account can seem overwhelming, especially if
you feel unsure about your investment knowledge. The following basic rules can help you
make smarter choices regardless of whether
you have some investing experience or are just getting started. And you don’t have to come up with your investment
strategy on your own. Landmark Bank investment professionals have the expertise and hands-on experience to help
you develop the financial strategy that’s right for you.
Don’t lose ground to inflation
Invest based on your time horizon
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% and inflation is running between 3% and 4%--the average annual
inflation rate over the last 100 years, according to InflationData.com. That means your investments are growing by no
more than 1% each year. And that’s not counting any other
costs. Even using a tax-deferred retirement account such as
a 401(k), you’ll eventually owe taxes on that money. Unless your retirement portfolio keeps pace with inflation, you
could actually be losing money without realizing it.
What does that mean for your