Do you have a retirement plan through your employer but want to explore other options to save for the future? You can open a separate investment account to invest a portion of your hard-earned money and reach your retirement goals faster.
Here are some tips to help you get started.
Set Retirement Goals
Use the following questions to help you determine what your retirement needs and goals are.
- What are your goals for this investment account?
- Will it be used to supplement your retirement savings?
- Is it the primary account you’ll be using to build your nest egg?
- If this account will be your primary source of income in retirement, do you know how much you will need to cover wants and needs?
- How soon do you plan to retire?
The answers to these questions will determine how much you need to contribute each month to meet your retirement goal. It’s a good idea to use a retirement calculator to come up with concrete figures.
These online tools ask you to input your desired retirement savings along with the number of years you’ll spend making contributions. You can also adjust the inputs until you reach figures that work best for your budget.
Choose a Suitable Investment Account
You’ve set a goal and are ready to start investing. What now? The next step is to select a suitable investment account. You want to settle for just any option without reading the fine print. Otherwise, you could end up spending far more than you bargained for in fees.
Some questions to ponder when evaluating investment accounts:
- Does the broker assess a fee to start trading?
- What types of investments are offered? Can you choose from stocks, bonds and ETFs?
- Is there a minimum deposit to open an account?
- What are the trading fees?
- Is automated investing available?
- What education and support resources are accessible by investors?
- How much is it to transfer the account to an IRA or taxable brokerage account?
Execute Your Strategy
You can spend hours drafting up the perfect investing strategy. What matters most is that you actually follow-through with your plan until your retirement goals come to fruition.
It may be tempting to treat yourself in lieu of stashing away money into your investment account each month. But staying the course will pay off in the long run. To minimize the chances of getting off track, be realistic and live within your means. You should also be willing to make adjustments to your portfolio as needed.
Most importantly, keep in mind that life happens and things don’t always go as planned. If you’re forced to stop or scale back on your contributions, it’s not the end of the world. Take some time to get your finances back on track and return to the drawing board when you’re ready.
Start Investing for Retirement
Take the stress out of saving for retirement with a Managed Investment Account from MoneyLion. There are no trading fees or account minimums to get started, and we rebalance your account periodically at no cost.
Portfolios are customized to align with your investment goals and preferences. Plus, you can take advantage of automated investing with weekly, biweekly or monthly deposits of as little as $5.
You can sign up by downloading the MoneyLion app and setting up your investment account.
But before you can start depositing funds, MoneyLion will ask key questions to gauge your preferences and investment goals. This also helps ensure the personalized portfolio you are assigned is the best fit.
MoneyLion offers portfolios for every type of investor. We will recommend one of the following for you:
- Conservative portfolio – a substantial portion of the portfolio is given to fixed income ETFs (bonds), and a small percentage is allocated towards equity ETFs (stock) to provide more stability
- Moderately conservative portfolio – similar to the conservative portfolio, but with elevated risk due to the presence of more equity ETFs in pursuit of slightly more gains
- Moderate portfolio – a weighted balance of fixed income ETFs and equity ETFs to seek optimal growth without taking on too much risk
- Moderately aggressive portfolio – assumes an elevated risk in pursuit of higher returns, but has fixed income ETFs to help shield against volatility
- Aggressive portfolio – seeks higher long-term potential gains and may experience extensive volatility
Once you accept our recommendation, you can then use our Risk Slider tool to change your portfolio to be more or less aggressive if you want. With the Risk Slider, you’ll find two additional portfolios that you can choose from as well:
- SteadyIncome portfolio – highly conservative and seeks to produce investment income while providing lower exposure to market fluctuations
- Equity only portfolio – most ideal for investors who have a lot of time to invest and want to assume more risk to pursue higher gains
Furthermore, you can also add our portfolio themes, which let you personalize and further diversify your investments in pursuit of financial returns.
While it’s a good idea to check in on your account often, MoneyLion will also monitor activity daily. If market conditions change, your account may be adjusted to keep the performance of your portfolio on track.
Save Now, Relax Later
Preparing for retirement doesn’t have to feel daunting. When you create a plan and stick to it you’ll be ready to sit back and relax in your golden years. With a MoneyLion investment account, you can easily track your portfolio in our app and make adjustments with the tap of a button.
You can get started with no minimum investment, and the only fee is a $0.25 withdrawal fee and a $1/month account administration fee – no matter how much you invest! Set up Auto-Investing and you’ll be growing your account faster than you thought possible!