A woman I know recently said to me, "I really should go to the bank to discuss my retirement fund, but I don't know what they are talking about, so I become embarrassed". This is sad, but universally true. This slide presentation may provide some ideas.

1. 10 Tips about Retirement Investing
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2. 10 Tips about Retirement Investing
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3. 10 Tips about Retirement Investing
Tip #1
Prepare a Budget
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Work out your monthly income from pensions, investment income, etc.
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Work out your normal monthly expenses
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Add in a “fudge” factor for expenses and divide equally by 12 to get monthly
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Include an annual travel amount and divide equally by 12 to get monthly
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Be aware of unexpected expenses (you can’t budget unexpected)
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Monitor this budget every week/month and adjust accordingly.

4. 10 Tips about Retirement Investing
Tip #2
Analyse your pension fund statement.
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Make sure your pension provider sends you a statement monthly/quarterly
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Get to understand what all the lines and boxes and numbers mean
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If you don’t understand … ask. There are no dumb questions.
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Fully understand the difference between value increases and income.
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Compare this statement to last month’s, and last year’s same month
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Do NOT throw them away, use a file/folder, and hold on to them.

5. 10 Tips about Retirement Investing
Tip #3
Understand your Pension Fund Portfolio Mix.
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The Portfolio Mix is the make-up of your shares, mutual funds, bonds, etc.
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Clearly understand what each asset class (above) is doing for you.
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Be clear on which asset class provides (cash) income and value increase
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As your needs change (check your Budget), change the Portfolio Mix.
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As you get older, the typical Portfolio Mix is to increase more Fixed Income.
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Fixed Income means income from a Bond for example which doesn’t fluctuate.

6. 10 Tips about Retirement Investing
Tip #4
Self-Managed Pension Funds
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This simply means that you do not use an outside, or professional, manager.
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If you know what you are doing, this is a much more personal approach.
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This will more easily help you correlate your Budget and your Portfolio Mix.
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But this is not for the faint-hearted, or “know-it-alls”
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Be constantly watching your Portfolio and Financial News for change
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Be constantly updating your income/value projections.

7. 10 Tips about Retirement Investing
Tip #5
The name is Bond
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Companies, Governments, etc issue Bonds.
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They are investments which pay a set interest rate (“Fixed Income “)
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If market interest rates go up, Bond Values go down, and vice versa
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Bonds will normally have a Call Date when the Borrower can call them in.
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Find out the difference between Coupon Rate, Yield to Maturity, Yield to Call
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Generally, Bonds pay better interest rates than Savings accounts etc..

8. 10 Tips about Retirement Investing
Tip #6
Ordinary Shares (“Equities”)
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These are shares issued by companies on the NYSE for example.
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Shares have a Buy Price and a Sell Price - values fluctuate.
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Shares usually, but not always, pay an annual dividend (usually quarterly)
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Ordinary Shares are deemed higher Risk than Bonds - be aware
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Ordinary Share Prices are influenced by the company’s performance, and the economy
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Ordinary Shares are potentially high overall return investments - but NOT always.

9. 10 Tips about Retirement Investing
Tip #7
Preference Shares
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Preference Shares are typically issued by companies.
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They will usually be quoted on the Stock Exchange e.g. NYSE.
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Preference shares typically have a fairly stable dividend payment plan.
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Generally speaking Preference Shares do not wildly fluctuate in value.
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Preference Shares typically rank higher than Ordinary Shares in terms of (less) Risk.
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Preference Shares from a quality company are usually good investments.

10. 10 Tips about Retirement Investing
Tip #8
Mutual Funds.
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This a great way to manage your Pension Fund/Investment Portfolio.
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Mutual Funds come in all sorts of shapes and sizes… shares, bonds, cash, etc
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Mutual Fund Managers also come in all shapes … the good, the bad, and the ugly
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Track Record is a good indication of performance - but should not be THE sole driver
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Monitor the Fund and the Manager regularly.
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Mutual Funds, if chosen appropriately, are deemed to be lower Risk

11. 10 Tips about Retirement Investing
Tip #9
Cash Flow versus Value Increase.
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Cash Flow means cash flowing into your bank account (or reinvested)
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Value increase means the portfolio goes up, but no cash inflows.
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If you don’t need the cash for living purposes then consider value increase.
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If you do need the cash for living purposes then seek Cash Flow.
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If you intend to leave money to the kids, balance between Cash and Value.
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If you expect to live long (hope so) then be cautious about that balance.

12. 10 Tips about Retirement Investing
Tip #10
Drive carefully.
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It’s easy to Buy, but not so easy to Sell
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When someone tells you it’s too good to miss, it’s probably worth a miss.
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Watch all trading costs, including mutual fund fees
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If it’s a dud, cut and run
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Never be oversold by an enthusiastic manager, especially if he’s young
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And Remember … It’s YOUR MONEY – Got it...?? ………
YOURS !!!!!

13. 10 Tips about your Retirement Investments
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14. 10 Tips about your Retirement Investments
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