How Seniors Can Increase Investment Returns

How Seniors Can Increase Investment Returns

There’s no doubt that saving and investing money from each paycheck steadily is one of the best ways to prepare for retirement, but how can you increase your returns on your investments and make your savings go further? As you approach retirement, it is important to be sure you are maximizing your returns on your investments to cover expenses and inflation in retirement.

Updated on Dec 06 2019


There’s no doubt that saving and investing money from each paycheck steadily is one of the best ways to prepare for retirement, but how can you increase your returns on your investments and make your savings go further? As you approach retirement, it is important to be sure you are maximizing your returns on your investments to cover expenses and inflation in retirement.

These tips can help seniors increase investment returns.

Four Tips to Increasing Investment Returns for Seniors

1. Be consistent, even with a volatile market.

We can not control the market, but we can control our actions within the market. Making regular contributions to investment accounts is the fastest and easiest way to create wealth. Automating your contributions to your investments in a great way to consistently grow your investments and avoid overreacting to changes in the market.

A popular approach to making consistent contributions is dollar cost averaging (DCA). This means the investor contributes the same amount each month, no matter how the market is performing, buying more shares when the market is low and less shares when the market is high. Overall, this is a great way to ensure you are setting money aside for your future instead of spending it elsewhere.

2. Manage your risk appropriately.

You will need to decide for yourself, with the help of a financial advisor, your investment risk tolerance. Because all kinds of investments involve some sort of risk, you will need to determine how much risk you are willing to take with increased returns and portfolio growth. Taking too much risk can result in huge losses but not taking enough risk can leave you with less than enough for a financially comfortable retirement.

3. Create your own Investment Policy Statement (IPS).

Every investor should have an IPS that includes your personal goals and your timeline, your risk tolerance, how much you will invest, and when you aim to rebalance your investment portfolio. As simple as your IPS may be, these important statements can help guide you when the market becomes volatile, helping you to refocus on long term goals and not overreact to natural changes in the market.

4. Don’t forget about taxes.

Paying taxes is a necessary part of life. However, there are important ways that investors can minimize their taxes on investments. Most retirement accounts are tax-deferred or tax-exempt. Through employee-sponsored retirement accounts, IRAs, 529 College Savings Plan, Health Savings Accounts, and more, investors typically have the opportunity to decide how and when they take withdrawals, which can reduce the amount of taxes paid on investments.

Get Expert Advice to Increase Investment Returns

Ultimately, a fiduciary financial advisor can help you strategically plan your portfolio to avoid retirement investment mistakes and increase investment returns. Starting with a comprehensive financial assessment, your financial advisor can help you spot areas where you can increase returns, manage risk appropriately, and help you navigate a complex tax code.

Find an Advisor Near You

Advisors by City

Find advisors located in the cities nearest you.

Need a financial advisor?

100% free consumer service


Back to Top