These 7 proven ways to build your retirement portfolio are just like pillars in building a strong house. A strong building needs a strong foundation, wisdom and a good plan. The foundation will make the house strong even after many years; the plan will also ensure that the house is built in a flexible way that allows for adjustment and expansion
- A retirement portfolio should be diversified to manage risks and flexible enough to allow changes if need be. It should also be prepared in a simple way and not complicated. it should state the clear goals and actions to be taken at any point in time.
- You should start planning for your retirement as soon as you start work. You do not have to be an expert or a genius to build your retirement portfolio, but you need to start early at a young age to enable you accumulate enough investment by the time you are ready to retire.
- If you are working for an organization or a company that has a retirement plan, please take up the opportunity and join as early as possible. Some companies match and sometimes double the pension contribution of their employees. If possible, please make voluntary contributions to boost the retirement savings account.
- If you are self-employed please set up a Retirement savings account with a mutual fund account and make monthly contributions to the fund.
- It is important to diversify your retirement portfolio. A portion of what you are putting aside for retirement should be invested in real estate, the stock market, mutual funds, money market fund and bonds. A wise saying says, cast your bread in many waters and after many days, you will find it again. As you cast your savings in different investment vehicles you will enjoy them in your retirement.
- Understand your financial goals and write down your retirement plan. You cannot hit a target you are not aware of its location. You must locate and identify your financial goals, identify a starting point and decide what you want. Some actions may require urgent intervention while other goals might be periodical like a regular monthly or annual flow. You might consider hiring a retirement wealth coach to guide you on your investment journey so as to avoid making mistakes.
- Stay updated on the operations of the financial market and investment opportunities. Building an ideal portfolio takes time and you need regular information to help you plan your retirement investment strategy.
Article by Bibi Bunmi Apampa, retirement wealth strategist and high-performance business coach she can be reached at https://www.RetirementPlanningNigeria.com