Retirement is the time of relaxation in life; it is this phase of life that one particularly likes to be stress-free. It is because of this that all provisions are made well in advance to ensure that the twilight years are comfortable and happy.
Scott Tominaga an expert in financial services for more than 25 years emphasizes that it is important to plan and make arrangements while there is still time for a good retired life. He thus shares his knowledge on how to invest for retirement effectively.
He also has hands-on experience in alternative investment, compliance, and administrative functions. His career began as a regulator at FINRA after which he dedicated himself to the field of brokerage and management of investment for almost 20 years. Currently, he is the Chief Operating Officer at Partners Admin LLC.
He says that most individuals panic about the amount of money that they need to save for their retired life. The common worry is whether or not the money is sufficient or what if they outlive the time they have calculated in reality. To make this easy, he goes on to give the amount calculated by experts that would be needed for an individual retiring in 2040. The figure suggested is approximately $69,000 annually.
Though apparently, one is not working during retirement, it is a time Scott Tominaga emphatically says one is earning. The difference lies in the mode of working. That is to say, previously they put in physical or mental labor to earn that money. On the other hand, after retirement, the individual does not have to give manual labor but will receive money from other sources. By virtue of these other sources, a traditional company has its policies for retirement and it is through these that they can expect a regular income every month.
A leading newspaper in the US has pointed out through a survey that one-third of the people working at traditional offices, can depend on social security as their aid in income. An approximate amount of $1800 a month can be expected through this investment. One concern that he has raised about savings is that surveys have revealed that American individuals are not saving enough for retirement. The only solution to this problem is the awareness of people on how much needs to be saved for relaxed retired life.
Hence, along with the traditional form of investment, one should also venture into investing in other tools of investment that can keep them from unnecessary anxieties. How one can expand the investment portfolio include an investment in the following, opines Scott Tominaga:
- Bonds – these provide a lot of stability and offer a certain amount of movement upward by reducing the risks associated.
- Stocks – are the other most common tool for investment where one can easily invest at least 50 % of their money.
The major difference between stocks and bonds is the risk associated with each. While bonds are comparatively less risky, stocks have the maximum amount of risks attached to them. Keeping cash aside and investing in other commodities are the areas of investment suggested by experts.