You will probably need more income during your retirement, more than what Social Security will give you. That is where your savings can help.

But your savings should not just sit in cash. Instead, you should invest your savings into your career so your money keeps going into a larger amount over time.

A lot of folks who are new to investing are overwhelmed by trying to choose how to divvy up their funds in their IRAs or 401(k)s. And many of them make the mistake of accepting misinformation that could set them back from accomplishing their goals. Here are three of these myths that could derail your retirement.

1. Stocks can be dangerous

Stocks are a very volatile investment. But to say they are a dangerous investment is a big exaggeration.

If you look at the market’s past, you will see that while it has had its share of turmoil, it’s also managed to come back from downturns each time. You will also see that investors who stayed put during past stock crashes wound up ahead, despite these temporary problems.

There is definitely risks in investing in stocks. But there is also risks in not going that route.

If you play it too safe, you may not get the full returns you could. And that might leave you with less money than you would like for your retirement years.

2. The more, the better

Diversification is a vital thing to have inside your portfolio. It can cause solid growth and guard you during downturns.

But it is also better to focus on owning quality stocks more so than quantity. Rather than focusing on buying a specific amount of stocks, you should instead focus on the types of companies you are buying and the specific ones you have selected for your portfolio.

3. What to do before retirement

It’s true that as retirement gets closer, you should start shifting some of your assets out of stocks and into bonds, since bonds do not usually fluctuate as much as stocks. But this does not mean you should be completely out of stocks when you retire.

You need stocks to keep bringing in growth. It is this growth that will allow you to take larger withdrawals from your savings during your retirement to augment your Social Security income.

Try to have around 50% of your portfolio in stocks near the start of your retirement. You can work with that percentage given your specific retirement age. But do not make the mistake of selling your stocks completely.

Author: Steven Sinclaire

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