tackle responsibilities as early as you would have liked. Or, it’s entirely possible that day-to-day bills were just too overwhelming and you could not afford to invest until just recently. One way or the other the net result is a nagging feeling in the pit of your stomach and the realization that you might need to play catch-up to reach important financial goofs. Here ore some tips to help you on your way.
Daniel Lamaute of Lamaute Capital says:
- Review your retirement goals. Take a hard look at your current paycheck, your monthly budget, and then the mirror and resolve to find that money.
- When you’re racing to make up for lost time, it pays to be an aggressive investor. In terms of asset allocation a 40- year-old who’s just starting to put retirement funds together, might choose a mix of bonds and storks slated for someone 10 years younger — say the 20% bonds, 80% stork or mutual fund mix that many financial planners would advise. Remember, the extra risk will be mitigated somewhat by the fort that you still have 25 years until retirement.
- Invest in yourself through education. You will be able to obtain and maintain a readily marketable skill blase that you ran draw on in a pinch. Besides being insurance in today’s market, this investment will undoubtedly pay off when you’re in your late 60s and still wont to earn an income.
- Take full advantage of your company’s retirement program. For most of us, that’s a 401(k), where your company may match Your retirement savings. “It’s rare to find something for nothing,” laughs Lamoute, “but corporate retirement plans are about as good as it gets.”
- Stay abreast of new tax-advantaged investment products. With all the changes with our tax code, there are a number of new savings vehicles that may be useful to you in sheltering much of your investment earnings from taxes until your retirement. Consult with an experienced tax accountant or investment professional for advice.
Daniel Lamaute, CEO of Washington, D.C.-based Lamaute Capital Inc., a registered brokerdealer specializing in retirement plans for longterm investors.