Sarah Holden, from the Investment Company Institute, shares how to save for retirement with amazing results. Sarah reveals why being consistent can put you ahead in the money stakes. Following some simple money rules can make a tremendous difference to your bottom line.
Sarah is the Senior Director, Retirement & Investor Research. Sarah job includes analyizing the role of mutual funds in the retirement marketplace. This includes Defined Contribution Plan and IRA markets. Overseeing the IRA Investor Database, containing data on more than 10 million IRA investors, allows analysis of IRA investors’ contributions, rollovers and withdrawal activity and asset allocation.
ICI has offices in Washington DC, London and Hong Kong. The Investment Company Institute is the leading global association of regulated funds, including mutual funds, exchange-traded funds, closed-end funds and unit investment trusts in the United States, and similar funds offered to investors in jurisdictions worldwide.
ICI gathers data on the fund market around the world including Australia. Analyizing data on regulated funds globally, mutual funds, the fund market and exchange traded funds allows Sarah and the ICI to monitor these well regulated, cost effective and diversified products.
As with any investment product the younger you are to start the more benefit you will gain with compounding. Younger Australians already benefit greatly with putting their compulsory retirement savings via their employer into superannuation. The added bonus comes from making employee contributions along the way into a product that can be taken from job to job.
Fundamentals of Growing and Protecting Your Nest Egg:-
- Stay committed pay check to pay check;
- Consider Tartet Day Funds that mature when you are ready to retire that will rebalance over the life of the fund;
- Keep track of all of your retirement savings accounts and consider rolling them into one account;
- Diverification, don’t put all your investor eggs in one basket, one equity consider index funds;
- Pay attention earlier;
- Look at your increasing your contribution rate.
Since an index fund owns all of the investments in the index, there is no picking winners and losers. As result, there’s also much less work in maintaining an index fund. That results, normally, in much lower costs for the investor. Do you have time to pick your own companies to invest in?
Index funds are a low-fee, no-fuss way to invest money. Everyone gushes about index mutual funds, and for good reason: They are a low-cost way to invest in the stock market. It might be the smartest and easiest investment you ever make.