Tracking daily or weekly fluctuations in the economy and stock market can be positively dizzying.
Although saving for retirement, in contrast, is a long-term strategy, it does require wise decisions to get started and periodic review and restructuring.
During National Save for Retirement Week, observed through Sunday, Secretary of State Jason Kander has offered recommendations to help investors reach their retirement savings goals.
The observance, Kander said, "is a good time for Missouri families to sit down and review their investment portfolios. Knowing the right questions to ask can help you choose a retirement professional and lead to a secure retirement."
He encourages investors to:
• Ask if the financial professional is registered. In Missouri, investment advisers and broker-dealers must be registered. Understanding the difference between an investment adviser, broker-dealer or financial planner will help you decide what services best meet your needs.
• Learn if the financial professional has a disciplinary record or any formal complaints. Investors may access the performance history of advisers by calling the toll-free investor protection hotline at (800) 721-7996 or visiting www.MissouriSafeSavings.com.
• Ask yourself if you are saving as much as you can to meet retirement goals. A rule of thumb is to save 10-15 percent of your annual income for retirement, although that may be difficult. Your adviser or financial professional should work to create the best plan for what you can afford.
• Determine what fees are associated with your investment. Your investment professional should divulge all fees associated with any investment and provide advance notice if the fee structure changes or accounts incur any charges.
• Invest in a diverse range of products. Your investment professional should provide an assortment of options. Never place all of your savings in one investment or company.
• Request a prospectus for the product or company in which you are investing. A prospectus is a detailed brochure or list of company and product facts and information to help you make the best decision about whether the product or company is a suitable investment for you.
• Consider whether the timing makes sense. Knowing how long you have left before retirement can help you evaluate risk and guide your investment decisions.
• Find out if the financial professional a fiduciary. Fiduciaries are required to place the financial needs of clients above their own when making investment decisions. You should never feel pressured into buying or selling a product, and your investment professional should be willing to adapt your retirement plan as your needs and goals change.
Procrastination is the enemy of sound retirement planning. The sooner you start, the more comfortable you will be in retirement.
Save For Retirement Week is an opportune time to begin or review your retirement strategy.