5 Retirement Mistakes You Must Avoid

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5 Retirement Mistakes You Must Avoid

#2: Investing Too Conservatively

Conservative investments like bonds and CDs are great for protecting principal, but they’re not the best tools for growing your retirement wealth. So you’ll want to lean toward aggressive investments like stocks when you’re young.

Financial planners recommend subtracting your age from 100 (to be conservative) and investing that percentage of your savings in stocks. For example, if you’re 28, you’d invest 72 percent in stocks and gradually invest more conservatively as time goes on. For a quick guide on how to invest by age, take a look at NerdWallet’s infographic.

Note that you can begin trading stocks free of charge, because many firms offer free trades over a given period as promotions. These include companies such as TD Ameritrade and Firstrade.


Article printed from InvestorPlace Media, http://investorplace.com/2013/11/5-retirement-mistakes-must-avoid/.

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