To have the money you’ll need in retirement,
you need to put the assets you’ve already accumulated to
work. That means investing a substantial part of your principal
for long-term
growth
rather than keeping all of your money in a regular savings account
or in
cash
equivalents that don’t earn enough to outpace the
rate of
inflation.
In general, investing for growth means putting
money into stocks and mutual funds or managed accounts that invest
in stocks. But it also means allocating part of your portfolio
to
fixed-income
investments,
such as bonds, which may provide a stronger
return than stocks in some periods.
Little by little
Part of building a substantial retirement
account also depends on your adding assets to your investment
accounts on a regular basis. You can do that by having money deducted
from your paycheck, scheduling transfers from your checking or
savings account, or allocating overtime pay, bonuses, or gifts
to your long-term goals.
