Get the Most Out of Your Retirement With NJM’s Investment Strategies

Investments are not guaranteed. And in a market that will always have its ups and downs, experiencing a dip or a loss in value is inevitable. At the end of the day, the best investing strategies increase returns, minimize risk and meet your goals. Find the strategy that's right for you with NJM.

When planning for your retirement, maximizing your funds by saving early in your career should be a top priority. By starting early, you allow yourself more risk in your investment strategy which can pay off in the long run. That being said, it’s never too late to start and there are many ways you can maximize your retirement savings.

Here’s what you need to know to get the most out of your retirement, and how NJM can help you along the way with tailored investment strategies.

Start Saving Today

Regardless of where you're at in life, saving as much as you can now and letting compound interest handle the rest is key to maximizing your earnings. For example, if you begin putting money away when you're 25 years old and you're investing $75 per month, it will grow over time and have a larger dollar amount by the time you're 65, which would be roughly $260,000.

The best way to do this is through an employer-sponsored plan like a 401(k) or pension plan. If you don't have access to these options, another option is an IRA (individual retirement account). These are accounts set up by banks or brokerage firms that allow investors to save for retirement while earning more interest than they would with a regular savings account.

These accounts are easy to open and manage, so there's no excuse not to get started today!

Maximize Your 401(k)

A traditional 401(k) plan might be the right choice if you're eligible to contribute pretax money. For example, if you're in the 12% tax bracket and plan to contribute $100 per pay period, your take-home pay will only drop by $88. That means you can invest more of your income while minimizing the hit to your monthly budget.

It’s also important to note  that if your employer offers a Roth 401(k) feature, which uses income after taxes rather than pre-tax funds, you should consider what your income tax bracket will be in retirement. This will help you decide whether it’s the right choice for you in the long run.. Even if you decide to eventually part ways with that employer, you have choices on what to do with your 401(k) account.


Take Advantage of Catch-up Contributions

If you’re still working, then you still have time to save for retirement. What’s important though is that you get started today.  The sooner you start saving the more time your money has to grow, which is the ultimate goal.

But even if you've been contributing to your 401(k) or IRA for years, there's still a chance that you may not have been able to contribute as much as you would've liked. This is where catch-up contributions come in—they allow you to go beyond the normal limits on yearly contributions as of the calendar year when you turn 50.

Revisit Your Portfolio

Revisiting your financial portfolio every 6 months will help you stay on track financially. The issues and problems we face are  constantly changing, and as you get older these challenges  can be more consequential. By sitting down with your financial advisor regularly, you can identify  your problem areas and make changes to fix them along the way.

Consider these tips for weathering volatility:  

  • Stay diversified: A great way to insulate your portfolio is to have exposure to stocks, bonds, and international markets in an asset allocation plan that makes sense for your risk tolerance and goals. Bonds can provide stability during downturns and international exposure can give you access to markets that may be generating positive performance where others are falling.  
  • Make educated decisions: Making a decision based on a recent market event usually results in a mistake. It’s better to be calculated than reactive.  
  • Control what you can—costs: Expenses eat into your returns. This is a particularly painful realization when stock markets are correcting.  
  • Revisit your asset allocation: If the market is worrying you or if you’ll need your money soon, it may be time to consider less risky investments. Set realistic expectations - a financial planner can help you review and discuss your options. 

How NJM Can Help

No matter where you find yourself in life, it's never too late to get the most out of your retirement. By having a sound retirement plan in place, you ensure a healthy nest egg to enjoy during the course of your golden years.

When it comes to retirement planning, it's best to have a trusted financial advisor to help guide you through your retirement journey. At NJM, we take the opportunity of planning your retirement personally and will dedicate our team to ensuring the health & longevity of your retirement portfolio.

Nic McLeod is a second-generation Wealth Preservation Specialist. He has nearly 20 years of experience, and his client base is diverse in both their professional backgrounds and financial needs. 

We proudly hold a record free of any consumer complaint which we believe is a direct result of the core values here at NJM Wealth Preservation Strategies.

If you want to learn more about retirement planning strategies, schedule a consultation call with us here. We look forward to discussing healthy retirement options for you.