Retirement investment strategies

Most people dream of their retirement day. However, if you don't have the right savings, your retirement can be a stressful time. Most experts recommend that if you retire at 65, you will need around $1 million to cover living expenses.

If this figure makes your nervous, consider your investment strategies. The following are some successful retirement investment strategies that will help to ensure you have the money you need when you retire.

Don't touch your IRA (Individual Retirement Account)
There are two types of IRAs-Roth and traditional. You can use both traditional IRA and Roth IRA funds to purchase a wide range of investments, such as stocks or bonds.If you don't already have an IRA, it's a good idea to start looking into one. There are different pros and cons and eligibility requirements, so make sure you research to know which is best for you. Both types of accounts have penalties for early withdrawal of your money, so it's a good idea to stay away from your IRA unless it's an absolute emergency. This will not only make it so you don't have to pay the fines associated with accessing your retirement funds early, but it will allow you to have more money when your retirement comes, which is what the account is for in the first place.

Consider the stock market
Because of the stock market's volatile nature in recent weeks and months, many people have begun taking their money out of the stock market. However, the stock market was designed for long term investing and even in a cautious approach to investing in stocks is more than likely to be a good move for your investments as it will leave you with a larger retirement fund when you are ready to access those funds.

Because investing in stocks can be confusing, it's a good idea to speak with a professional investment adviser or a stock broker. He or she can help you look at your goals and develop an investing plan that is tailored to your risk tolerance and your individual needs.

Downsize your home
If you are stressed about your upcoming retirement, take a look at your home. Many people, especially those who have lived in their homes for a long time, have equity in their house that could be more than $100,000. Many people, when their children are grown and they retire, will sell their homes and downsize to a smaller place, making a nice cushion from the equity for their retirement.

Even if you don't want to sell your home (and many don't), it's still a good idea to know the money is there.

Retiring doesn't mean stopping work
Many people retire only to begin working part-time jobs or start businesses. If you retire, you're in good shape and health, consider taking a part-time job. A regular paycheck, even a small one, will not only keep you active, but you won't have to draw as much money from your retirement investments for your day to day living expenses. Many people retire and take on part time jobs in areas of interest for them, such as a library or garden store, so it's more like having a hobby than a job.

Smart investing can help you to be better prepared for your retirement. The above retirement investment strategies will help you to enjoy your retirement rather than stress out about it.