Building up your retirement portfolio takes years of dedication and hard work, but the effort pays off handsomely, putting you in a position to enjoy life to the fullest after your career.
Unfortunately, there are a number of mistakes lurking around every corner that could compromise your portfolio, stealing away years of hard work and financial security.
Here are a few of the most common ways that people accidentally ruin their retirement portfolio — and how to avoid them!
Not investing enough (especially when you can get $5 to invest in Amazon, Apple or other companies to get started)
Even if you do invest, there’s a chance you may not be investing enough. Consistent investing, and making sure you’re putting in enough can help ensure you’re growing your wealth efficiently.
Stash was built to help beginner investors get started. You can buy fractional shares (partial shares) in companies that are household names like Apple, Google, Amazon, and more3. Normally a single share of these companies could cost hundreds or even thousands of dollars, but you only need as little as $5 to get started with Stash.
If you're thinking about saving for retirement, you can start investing in an IRA and enjoy the tax benefits that come with retirement accounts. Stash also offers tools and guidance to help you along the way and you can use the Stash app to track your investments from anywhere.
As a bonus, Stash will give you $5 to invest after you deposit $5 or more into your personal portfolio.1 Want even more tools and guidance? If you choose the Stash+ plan2 when signing up, you can earn 2x stock rewards when you spend on eligible purchases!4
Not having a source of passive income
Traditionally, investing in real estate is a complicated process. But with Diversyfund, you can co-own a portfolio of fully vetted, cash flowing assets in just five minutes. Getting started is easy. You just create your free account, browse available investments, put your money into the projects that seem interesting to you and then monitor your investments through the Diversyfund dashboard.
Diversyfund is an all in one platform with no middle man and, most importantly, no fees. With real estate beating the stock market by a significant margin for the last 30 years there’s no better time to diversify your investments.
Not diversifying your portfolio
Stock market volatility can be financially damaging for investors, especially as you near retirement. You could move your investments into a savings account, but have you seen interest rates lately? Another option to consider — diversify with gold.
Gold values are inversely correlated with the stock market and the dollar. When one goes down, the other usually goes up. If you want to protect your retirement funds, having diversified investments can help you weather market swings.
Gold Alliance is a reputable precious metals dealer that specializes in precious metals IRAs. They make it simple to transfer funds from your current retirement account (like a 401(k) or IRA) into a precious metal IRA — with no taxes or penalties.
Gold Alliance offers a free investors' guide to help you learn more about why gold and silver could be a smart choice for diversifying your portfolio, and how the process works.
Paying high advisory fees
Robo-advisors are a simple, online investing option for those who don't want to pay the high fees of a traditional investment manager, but still want someone else to handle complicated things like trading and portfolio rebalancing.
With Betterment, you can choose your risk level then invest in a range of funds chosen to help you earn better returns. Their technology also automates smart strategies, like tax loss harvesting, to help you save even more.
By following Betterment's recommendations, you could earn 38% more money over 30 years compared with an average investor.
Betterment charges just a fraction of the cost of most brokers, but create your account today and they'll waive your management fees for up to a year.
Forgetting about art
History has shown art to be one of the top investments of all time. In fact, in the last two decades art has outperformed the S&P by over 180% between 2000-2018.
But while the ultra-wealthy rake in huge profits, everyday folks have been left out in the cold. Masterworks is an exclusive platform that lets investors of all types add art to their portfolios in just a few clicks.
They let you buy individual shares of famous works by artists like Warhol, Banksy, and Basquiat, similar to stock in a company. Get paid when the painting sells, or trade your shares to other members on their secondary market.
While Masterworks requires a $5,000 account minimum to get started, you can build a well-rounded portfolio of masterpieces with the help of their art experts.
Skip the waitlist: Use our link to get exclusive access to bypass the 25,000 person waitlist!
Missing out on little ways to save
No matter how much you trim your expenses to save more for your retirement, you're still going to have a grocery bill. But, there's opportunity to earn something back when you shop.
Now you can get rewarded for your grocery bills with an app that lets you earn gift cards from pictures of your grocery receipts.
All you need is your phone and the Fetch app. After you're done shopping, just snap a photo of your receipt. Your photo earns points. Then you can redeem those points for gift cards at popular stores like Amazon, Target, and Home Depot.
BONUS: You'll get 2,000 points bonus when you enter this referral code: BUZZ before you scan your first receipt.
Overpaying for car insurance in Virginia
Car insurance can be one of your biggest monthly expenses so it's important to make sure you're not overpaying, especially when comparing premiums only takes a few minutes. Any money you save can be invested toward your financial goals.
FinanceBuzz has made it easy to search and compare quotes. Think of it as Kayak, but for car insurance.
They can help match you to insurance carriers and regional agencies to help you save on your car insurance. FinanceBuzz can save drivers up to $500 per year compared to their current insurance premiums.
It takes less than 5 minutes to fill out the form and you’ll receive a list of matches that show you online, email, and potentially phone quotes.
Bonus: Get smarter about money in just 5 minutes a day
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