Brought to you by: Integrated Wealth Management

A surprising number of people ask me questions like, “Which IRA is better?” or “Which IRA pays more?” An IRA–like a 401K or any other retirement account – is just an empty bucket. They are all the same until you deposit your money. So, what are the best investments to pick? This question makes people understandably nervous. I tell clients to remember…you don’t have to get it perfect, you just have to get started.

Start saving. Most of the money you’ll have when you retire will be the cash you save now.

Where Do I Start? It is easy to become overwhelmed with all the decisions that need to be made to ensure you select appropriate investments to achieve your long-term investment goals. How do you choose the right combination of investments to help you work toward a goal that may be decades away? The answer is to concentrate on the basics.

Don’t wait–invest now. To put the power of compounding (or revenue building) to work for you, start investing now. It’s easy to put off saving, thinking you’ll have more money to invest at some point in the future. In reality you are better off saving less now, than waiting and saving more later.

Understand that risk can’t be completely avoided. All investments are subject to a certain amount of risk.

Cash may be affected by purchasing-power risk. Bonds are subject to interest-rate movement and/or default. Stocks are subject to company-specific risks and/or overall stock market fluctuation.

Diversify your portfolio. It is impossible to predict which asset class will perform best on a year-to-year basis. Diversification is a defensive investment strategy to minimize risk. Diversify your portfolio with a variety of investments.

Don’t try to time the market. Timing the market is difficult because so many factors affect market fluctuation. You are better off setting an investment program that will weather good and bad financial times.

Know where you stand. Where does your money go? In order to build a successful financial plan for the future, you must know where your money goes now. Keeping track of your expenditures will help you to better understand your current financial situation.

You may identify spending habits you don’t like and change them, and ways to reduce your debt. Knowing where your money goes will help you find more dollars available for investment.

Reesa Manning is Vice President & Senior Financial Advisor at Integrated Wealth Management and can be reached at (760) 834-7200. [email protected]