retirement

10 years to retirement? Invest for balance

Don TaylorQuestionDear Dr. Don,
I am contributing $300 a month to my 401(k) plan at work. I also have a Roth IRA, but I don't know anything about buying stocks, bonds or mutual funds. So where do I start? I do have an idea of where I want to put my money for the next 10 years until I retire. Please assist me with choices as to how to invest.
-- Vilma Volar

AnswerDear Vilma,
With only 10 years until retirement, you don't want to swing for the fences in your investment allocations in retirement accounts. You also don't want to be overly conservative, because you want retirement funds to grow in value and purchasing power over time.

You have an idea of where to put the money, but don't know about buying stocks, bonds or mutual funds. You have a choice between a do-it-yourself approach and getting professional advice on how to invest to meet your goals. For do-it-yourselfers, I recommend Morningstar.com's Investing Classroom to get some basic knowledge about investing.

If you choose to get professional advice, work with a financial planner and get a sense of what your income will look like in retirement. Determine what you can do over the next 10 years to improve the odds of meeting your retirement goals.

Work with a fee-only planner to develop a comprehensive financial plan. Look for planners who are paid by the hour, and skip those who are compensated through commission or an assets-under-management approach.

An earlier column, "How a financial planner is compensated," provides some direction, as does the Bankrate feature "Financial planners: Not just for millionaires anymore."

Get more news, money-saving tips and expert advice by signing up for a free Bankrate newsletter.

Ask the adviser

To ask a question of Dr. Don, go to the "Ask the Experts" page, and select one of these topics: "Financing a home," "Saving & Investing" or "Money." Read more Dr. Don columns for additional personal finance advice.
 

Bankrate's content, including the guidance of its advice-and-expert columns and this Web site, is intended only to assist you with financial decisions. The content is broad in scope and does not consider your personal financial situation.  Bankrate recommends that you seek the advice of advisers who are fully aware of your individual circumstances before making any final decisions or implementing any financial strategy.  Please remember that your use of this Web site is governed by Bankrate's Terms of Use.

News alert Create a news alert for "retirement"

advertisement

Show Bankrate's community sharing policy
          Connect with us
advertisement
CD & INVESTING NEWSLETTER

Learn the latest trends that will help grow your portfolio, plus tips on investing strategies. Delivered weekly.

Blog

Jennie Phipps

Get your shots and stay healthy

Vaccinations are free for Medicare participants and people insured under the ACA.  ... Read more

advertisement
Partner Center
advertisement

Connect with us