Most Americans know they should be saving for retirement, but claim lack of confidence and distrust in the markets inhibit them from proactively planning for the future.
How can today’s investors feel more confident about the markets and their investing decisions? Education might be the key, and the good news is a variety of quality, easy-to-use tools designed to help investors understand market dynamics, individual investment alternatives and how to leverage tried-and-true investing principles to work toward a better future are available right at their fingertips.
Research shows most Main Street investors want more opportunities to learn how to plan for the future. In fact, according to Capital One Investing’s 2015 Financial Freedom survey, 60 percent of everyday investors say self-guided education and timely research on investing options will help them be better investors, and 58 percent want access to advisory services at an affordable cost.
If you are just getting started or want to be more engaged in planning for retirement, here are a few ideas that may help you feel more in control as you plan for your financial future.
Take advantage of free digital tools. Many online brokers offer free online and mobile tools that provide real-time access to the markets, third-party research on companies and economic events, educational articles on topics such as dollar-cost averaging and diversification, and retirement calculators to help you better understand your goals (and how to reach them). Many of these digital platforms also offer low-cost investing options to help you get started while establishing investing habits, like automatic investing plans, alerts and rebalancing functionality.
Access unbiased advice. For investors who want an expert to listen to their concerns, help them build a plan, discuss their options or offer guidance on the markets and economy, a financial advisor may be a good resource to turn to. Advisors can play many roles — they can help validate your decisions or guide you toward a strategy that’s appropriate for your circumstances, and they can help ensure you’re thinking holistically about your future (which may include planning for education or illness, managing life insurance and estate planning). And in times of market volatility, advisors can help you understand market dynamics and keep a clear head while making decisions based on your long-term strategy (rather than fear). Remember, if you opt to work with an advisor, you can still have a hand in managing your portfolio. Often a combination of self-directed digital engagement and monthly or quarterly advisor check-ins help investors feel secure about their plan, but not overwhelmed by decision-making.
Hold yourself accountable. Engage your partner and family to make financial planning a priority. Discuss your plan and the various ways you can stick to it. According to our Financial Freedom survey, only 16 percent of Americans discuss retirement on a daily or weekly basis with their spouse, and 32 percent say they never discuss retirement with their spouse. The more you sweep finances under the rug, the more stressful it can be when it’s time to make a big purchase, or a life change (like retirement) approaches. Regular communication will not only help you and your family stay on the same page, it will also help you remember to check in on and readjust your investments as needed to stay on track for your future.
By taking advantage of free digital tools, low-cost brokers and unbiased professional advice, you and your family can make financial education and planning a regular topic of conversation, which will help you keep your goals front and center. Remember, managing your finances may seem like a complicated process, but with a little time and effort, you’ll be feeling confident and ready to invest with assurance and conviction.
Securities are offered by Capital One Investing, LLC, a registered broker-dealer and Member FINRA/SIPC. Advisory services are provided by Capital One Advisors, LLC, an SEC registered investment advisor. Insurance products are offered through Capital One Agency LLC. All are subsidiaries of Capital One Financial Corp.
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How to Invest With Confidence originally appeared on usnews.com
