7 Things to Remember When Starting Your Retirement Portfolio

Planning for the day when you no longer have to work is essential if you wish to live out the latter part of your life in comfort. The most efficient method of saving enough money is by creating a retirement portfolio.

All the investments you’re holding to provide income during retirement make up your retirement portfolio. These investments can include stocks, bonds, certificates of deposit, 401(k)s, mutual funds, commodities, real estate, and cash in savings, to name a few.

The idea is that the money you invest in your retirement portfolio will contain a growth component during your moneymaking years and shift to income when you retire. Carefully planning your investments from a young age gives you a better chance of ending up with an adequate retirement fund when the time comes.

Your investments will make it far easier to retire because you can grow your wealth exponentially in the years leading up to the big day. This guide will take you through some tips for making the most of your retirement portfolio investments.

Types of Retirement Portfolios

portfolio full of documents for Retirement plans

There are a few different retirement portfolio types you should learn about to ensure you have a firm grasp of the possibilities. It’s often a good idea to hold multiple retirement accounts, if possible, to maximize your savings. Here are a few options to consider:


Your employer might offer a workplace retirement plan like a 401(k) or 403(b). These plans call for the company to automatically put a certain percentage of each paycheck you receive into a retirement account. Some employers will match your contributions to these plans as well, making it easier to save.


Individual retirement accounts, or IRAs, are different because your employer isn’t responsible for deducting money from your earnings and depositing it into your account. You can still automate your IRA, though, by having a specific amount transfer from your bank account to your retirement plan every month.

Traditional or Roth

Two types of IRAs exist: traditional and Roth. The main difference is that you pay taxes on retirement with a traditional IRA while receiving an upfront tax break on the money you contribute. A Roth retirement account doesn’t offer the upfront tax break on your contributions but provides you with tax-free income when you retire.

The format you choose for your retirement portfolio could depend on your employer and your personal preferences. It’s advisable to research the topic thoroughly or work with an expert to ensure you’re making the correct decision for your future.

7 Tips for Getting the Most From Your Retirement Portfolio

couple sitting in their living room planning for retirement portfolio

Determining the type of retirement portfolio that works best for you is only part of the process because you still have to develop a long-term plan and select suitable investments. Following a few tips can put you on the right track as you begin saving for a comfortable retirement.

1. Start Right Away

You’ll want to begin your retirement planning as soon as possible. Compound interest means that every year matters, so waiting even a couple more years to start could substantially reduce your retirement fund. 

2. Plan to Save Enough

Developing a plan from the outset is a good idea because you want to ensure you have enough money to retire comfortably. Advisors will typically recommend that you invest 10%-15% of your income during your prime years for retirement. You’ll have to figure out how much money you’ll need as you come up with a long-term plan.

3. Consider Your Age

The age at which you set up your retirement portfolio will influence the steps you take. Those starting later in life might have to take more risks to reach their goals, while younger investors can be far more conservative. Older investors with mature retirement accounts can also afford to go a more conservative route, such as investing in bonds and bond funds over the last few years. 

4. Diversify

You don’t want all your eggs in one basket because you could end up encountering substantial losses if one investment fails. A diverse portfolio features investments from various industries and numerous formats, since bonds can fall as stocks rise and vice versa. 

5. Max Out Company Match

Some employers will match your 401(k) contributions to a certain amount, so it’s wise to take advantage of this policy as much as you can afford. These programs are basically free money for your retirement and often depend on your annual salary. Contributing 10% of your annual salary to your 401(k), for example, might earn an additional 5% from your employer to help you plan for retirement.

6. Don’t Cash Out

It might be tempting to cash out some of your retirement funds early to pay for renovations, a new car, or a summer home. You must remember, though, that not only will you not have that money for retirement, but there’s a 10% early withdrawal fee. That’s a sizable hit to take and isn’t worth it in most situations.

7. Plan for Taxes

The taxes you’ll pay in retirement come down to the plan type you select, which you’ll decide on depending on your current and retirement income. It’s best to go with a Roth 401(k) or Roth IRA if you’ll be in a higher tax bracket during retirement than when working because you won’t pay taxes on withdrawals. Those who will earn less money in retirement should select a traditional IRA or 401(k) but should also remember that they’ll have to pay income tax on withdrawals from their retirement portfolios.

Efficiently planning your retirement portfolio is essential because it creates a roadmap for you to follow to the glorious day where you no longer have to work. Consulting with an investment professional can help you make the best choices to get you there. Finding the right approach to investing and saving money today gives you a clear path to financial freedom in the future. 

Get Expert Assistance to Maximize Your Retirement Portfolio

A lot goes into developing a retirement portfolio, and the process can create confusion. You might not know what type of plan would work best for your future. You could struggle when choosing individual investments as well.

Bogart Wealth offers retirement planning services based in McLean, Virginia, and Woodlands, Texas. Our team can work with you to create a long-term fiscal plan based on your retirement goals, putting your mind at ease about your future. Contact Bogart Wealth today for information on our financial and retirement planning services.

Please remember that past performance is no guarantee of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Bogart Wealth, LLC [“Bogart Wealth”]), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level (s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from Bogart Wealth. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. Bogart Wealth is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the Bogart Wealth’s current written disclosure Brochure discussing our advisory services and fees is available for review upon request or at bogartwealth.com

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