Retirement is an important part of the budgeting plan. It makes you invest in yourself and prepare for the future. In this episode we talk about the different options for investing and tips on how to plan for your post-income life.
Please review and subscribe to your show on your podcast provider of choice.
Quick disclaimer: We are not investment or retirement specialist. We have no certifications in this area. We are speaking from our experience and research. Please consult someone with the proper credentials as we are only speaking from our experience.
Retirement is a long term game. Budget your money for retirement so that you can have many multiples more than what you invested in when you retire.
Do not invest in retirement if you have massive debt. Home and possibly car debt are fine, but otherwise, you should try to pay off your debts as quickly as possible.
Pros: Lowers taxable income (you save money in yearly taxes)
Cons: You get taxed on any growth
Pros: Tax free growth
Cons: Does not lower your taxable income
- Performance: YTD, 1 yr, 5 yr, 10 yr, since inception – best to find one with a good 10 yr track record at least; don’t worry as much about the YTD (it may just be having a bad year)
- Fees: Look at the expense ratios – look for stuff below .3% for passive index funds (you’ll find a lot of good ones below .1%); actively traded can be as high as 1 or 2%
- Morningstar Rating: 1-5 rating system