Invest for Your Retirement

August 26, 2018
Posted in Insights
August 26, 2018 DCT Capital Fund

It should come as no surprise that investing can be associated with its own great deal of risk. Most people aren’t aware of the repercussions that come with inflation and volatility. If you are planning for your retirement, it’s vital to keep risks at a low by making smart investments. In truth, the only way to make rational decisions is to be aware of how a method for saving for retirement has a tradeoff.

The good news is, if you are aware of how you can be negatively affected by these tradeoffs, you can be prepared to make the best decisions so that your retirement is what you envisioned for yourself. The information below goes over a few critical pieces of information, so that you may decide which route is best for you.

First Things First

The earlier you plan for retirement, the more likely you are to achieve your retirement goals. Regardless of what your goals are, there are plenty of examples of how significant timing can be concerning saving for retirement. Sure, there are variables of inflation that can make retirement funds somewhat predictable at times, but there is also that crucial element of timing. For example, a citizen who begins to save at the age of 30 is much more likely to make more money than someone who is only just starting in their 40s. In short, plan and save at your earliest convenience. It may not have a significant impact on your quality of life now, but in the future, you’ll thank yourself!

Plans to Consider

Some different vehicles drive a more prosperous retirement fund. The steps to making the most out of your investments depends on which methods you decide are the most beneficial for you. In the information below you will find information on the most popular ways of saving and some of the details that make them unique.

  • 401(k)s- The simplest and most common method for saving, 401Ks are automated employee sponsored accounts that automatically deduct funds from your paycheck. The penalties included in adopting a 401k plan only occurs before the age of 55. The advantage is that employers often add or match your contributions to reducing your tax deductions. Oh, and did I mention gains are not taxed until you make a withdrawal?
  • IRAs- Very similar to 401Ks, IRAs are not employee sponsored and are instead operated similarly to brokerage accounts. The penalties implemented with IRAs occur with withdrawals taken before 59.
  • Roth IRAs- Roth IRA’s income comes from income you’ve already paid taxes on. Withdrawals are not taxed as long as funds are held for at least five years.


Many people invest in funds tied to indexes that show potential long-term growth. While passively investing can present returns; there is no full proof method to ensure a 100% financial success rate. The best way to invest is to go for robust long-term growth, rather than being prone to take evasive action at every minor setback. Early planning can help you migrate towards the correct response and gain the most return for your investments.