The do’s and don’ts for retirement investing in 2019
When thinking of retirement, many people are not completely aware of what they should and should not do. Here are a few of our do’s and don’ts when investing for you retirement.
Do think long term
If you’re still working and investing for your retirement, then your time may be still 5-10 years away. If you plunge out of the stock market before the December plunge and then jump back in after the nasty period ends, it makes little difference over the long term.
Don’t think short term
News stories should not always require sudden re-evaluation of your portfolio. Stocks look forward, not backwards.
Do diversify
Your portfolio should look diverse and not one portfolio should exceed over five per cent of your total portfolio due to a lot of risk.
Don’t overemphasise small difference in returns
It says nothing how one fund return will do in the years to come so don’t overthink a few percentage differences – these are not the be-all or end-all of your investment portfolio.
Do embrace mistakes
Your shortcomings or small mistakes (and even big ones) are learning opportunities and ignoring them sets you up for failure.
Don’t obsess
Don’t think too much about your best or worst performing stocks in a month, quarter or year – they usually cancel each other out. The total – broad middle – is what really matters.
What are some of your retirement investing do’s and don’ts for this year? Let us know in the comments below.