Retire On Your Terms

Fact Sheet: Basics of Investing

Knowledge of investing is critical to retirement planning. By the time Americans reach retirement age, assuming they save consistently throughout their working career, most of their accumulated savings will be in investment earnings.

Currently, there is a knowledge deficit regarding investing among Baby Boomers. According to research by the Insured Retirement Institute, only about 17 percent of Boomers believe that they are extremely or very knowledgeable about making financial investments in securities, such as stocks, bonds, 401(k)s, mutual funds, and other such investment vehicles. Even more alarming, more than 40 percent of Boomers say that they are not very or not at all knowledgeable about making financial investments in securities. Such low levels of understanding of investing – an important indicator for determining future retirement security – suggest that many Boomers are financially unprepared for retirement.

Every investment carries some degree of risk, so it is vital that investors understand where they are putting their money. Some people are naturally inclined to be risk takers, while others are not. Some are financially secure enough to take greater risks with their investments than others. A thorough understanding of investment basics can help Americans determine their risk tolerance. The next step is consulting a financial advisor about how to best invest your assets to create a well-rounded plan for retirement.

To help explain the basics and investing, the coalition has released the Basics of Investing Fact Sheet. Review the fact sheet to learn about investing’s role in planning for a financially secure retirement and become better prepared to meet with a financial advisor about investing for your future.

Click below to download a PDF copy of the Basics of Investing Fact Sheet.
Basics of Investing Fact Sheet

Elderly Financial Advisor