When you’re just getting started, it can be tough to plan for something as far off as retirement. You might not even believe that retirement is possible. But investing now could get you to that goal easier than you think.
So, how do you decide what type of retirement investing you’ll do? Analyze, research, and consider investment choices, then act on what you learn. Here’s the process:
- Solidify your goals. Know what you want to do, when you want to do it, and why it’s important. Your priorities may look different from a friend’s — stay motivated by focusing on what you want for your future.
- Know what’s needed. Determine what it’s going to take to retire on your terms. How much do you want to have for each year of retirement, starting when? What level of investment can your budget take each month?
- Weigh the alternatives. Consider retirement savings options. What can you get started, easily? Start with easy accounts, like the TSP. Add your own IRAs or even a brokerage account. Read, think, and compare so you know the risks, the fees, and the potential results.
- Pick a path. Select investment approaches that you think are likely to help you achieve your goals. Will you manage investments DIY style, get help, or do some of each? Work on developing investment mindsets, skills, and habits you’ll stick with over time.
Don’t over-analyze, over-research and over-consider. Starting early with your retirement strategy is one of the best steps you can take. Get moving and keep moving.