Retirement saving can be a daunting task. Providence Financial & Insurance Services president Anthony Saccaro joins Wealth to discuss optimal retirement strategies for different generations.
For those 60 and older, Saccaro recommends "shift[ing] to more conservative investments" that yield interest and dividends because you can count on these, "but you can't count on growth." He cautions that despite current market trends, stability isn't guaranteed. "If it crashes at the wrong time, you might not be able to retire, and we just don't want that to happen."
For individuals in their 40s, Saccaro emphasizes dollar-cost averaging as a primary investment strategy, combined with both Roth IRAs and traditional IRAs. "The clients that I have and the people that I talk to in retirement that are the happiest are people that have a balanced bucket of tax-free money and Roth IRAs and money that they have in pre-tax or traditional IRAs."
Saccaro advises those in their 20s to "start the habit of saving," suggesting beginning with dollar-cost averaging at 10% just to "start saving something." He recommends Roth IRAs for long-term tax advantages and emphasizes the importance of saving for homeownership to eliminate rent payments during retirement.
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This post was written by Angel Smith