What’s the Best Way To Save And Invest For Retirement?

How To Save And Invest For Retirement

How do you figure out the best way to save and invest for retirement is one of those questions that has so many different answers. But, it's also true that some answers are better than others.

For example, shoving your money under your mattress probably isn't a good way given it might get stolen or burn in a house fire. Even if the cash is safe and sound, it loses its purchasing power by 1-2.5% each year due to inflation.

But, investing in appreciating assets, using proven methods that build wealth over time, is an answer that most wealthy people can get behind.

Invest For Retirement Patiently

Patience, or what I like to call “Patient Capital,” is the key to long-term wealth building.

Patient Capital means making investments that often take at least five years to see a return. It consists of investments in real estate, private equity, and your own business.

Patient capital is why the world’s wealthiest people and the largest institutional funds have a minority of their net worth in public investments.

They know that by removing the temptation to get in and out of investments during times of volatility, they stand a better chance to make higher returns. The long game wins.

And, it's getting easier and easier to setup a strategy that lets your money do what it does best – build.

Although the actual saving aspect of retirement planning may not be that fun, the effort is worth it. Having a financially stress-free retirement is priceless. Stay diligent, focus on the long game, and avoid the temptation to withdraw from your 401(k) too early.

Learn More About Investing And Retirement Planning

If you are new to Financial Samurai, you're in luck. There are thousands of free, insightful, easy to understand resources on this website on investing, retirement planning, budgeting, buying a house, real estate investing, and more. There's even a forum you can join for free to post, search, and answer a variety of topics.

Here are just a few articles you can use to learn more about how to invest for retirement, grow your wealth, and achieve financial independence sooner, rather than later. You can also check out our About page.

Get Free Help With Retirement Planning

Whether you are a novice investor or an experienced one, make sure you have the proper risk exposure. My favorite free financial tool to help you track and manage your net worth for free is by Personal Capital.

Not only can you see how your net worth is allocated, you can also get a better handle on your retirement cash flow needs with their Retirement Planner and Investment Checkup tools.

The more you can stay on top of your finances, the better you can optimize your wealth. I've used Personal Capital for free since 2012 and have seen my net worth sky rocket since.

Sign up for free today and start using their suite of free, easy to use wealth management tools.

Personal Capital Asset Allocation
Log onto dashboard and click Investing -> Holdings to get an overview of all accounts

About the Author: Sam began investing his own money ever since he opened an online brokerage account in 1995. Sam loved investing so much that he decided to make a career out of investing by spending the next 13 years after college working at two of the leading financial service firms in the world. During this time, Sam received his MBA from UC Berkeley with a focus on finance and real estate.