The Best Way to Invest? Forget About It!

Online, December 14, 2010 (Newswire.com) - Investment managers and financial planners tend to agree on one thing at least - micromanaging your investment portfolio can be counterproductive in the long run. The best investment strategy (no matter your age or tolerance for risk) is to decide on your plan, implement it so that your portfolio is balanced and diversified. You can diversify your investments through index or mutual funds, and decrease your exposure to stocks by shifting into safer vehicles such as bonds and cash as you approach retirement. Once your plan in place, forget about it - trust your plan and let the long term market gains make money - you can drive yourself crazy watching every short term rise and fall of your individual investments.

Regardless of your age, investment strategy and tolerance for risk - you need to be aware that far too many people are waiting until too late in life to make effective retirement decisions, according to two recent studies, one conducted by MetLife, and the other by online investment firm, Scottrade. Sixty-three percent of respondents said that excess debt is preventing them from saving for retirement and four of ten survey respondents said they were concerned that they have too much debt. Over half of respondents reported that they were behind on their savings goals and one in four people were significantly behind their retirement goals.
Of course, there are always those who put off even making goals in the first place ...

Sometimes debt consolidation loans or unsecured personal loans can be part of the financial equation for organizing one's financial house and getting ready for retirement.

Obviously, far too many of us are unprepared for retirement - in fact, most of us have a long way to go before we are financially prepared for retirement. If you are working there is no age that is too young to start thinking about your goals.

So - you are ready to start figuring out your goals - first you must start with knowing where you stand. Online retirement income calculators are great for that.

Once you know where you stand - take a hard look at your financial habits - especially savings habits. Some of the ways that you can start putting your finances in order are to change your budget so that you save more. Be sure to review your personal or unsecured personal loan, small business loan and credit card balances. Pay down as much of your high-interest debt or shift debt into a lower interest unsecured personal loan where feasible. Even a modest increase in your savings can yield big dividends later on. Make sure that your budget helps you meet your short and long term goals. If your employer offers a retirement plan, be sure that you contribute to it - as much as you can afford - especially if your employer offers a matching contribution. Ask your banker if you can set up your checking account so that a certain amount is automatically deposited into savings each month.