Getting Started: Saving for retirement can seem overwhelming, but getting started is often the hardest part, First, evaluate your current financial situation and long-term goals. That will help you determine what type of investment is right for you and if you need to enlist the help of a financial professional.
Determining your willingness to take risk
Are you willing to risk losing some or all of your money in order to earn higher returns, or are you more comfortable with lower returns knowing your initial investment is safer? Understanding how much risk you are comfortable taking determines your “risk tolerance,” which in turn informs which types of investment products are most suitable for you.
Choosing among your investment options
Each investment comes with certain characteristics, risk levels, and potential returns. Understanding your situation -- risk tolerance, time horizon, and specific goals -- will make it easier to choose the right investment for you.
Working with financial professionals
If you think you need guidance sorting through investment choices and monitoring the markets, you may want to seek the services of a financial services professional.
Verify that your financial adviser has the expertise you need and check that they are licensed through Commerce or the Securities and Exchange Commission. Defining what services you want will help decide which investment services provider is right for you.