Don’t Be Afraid to Take Risks

“For most people, the key to investment success comes down to three words: Save, save, save,” says Ken Weber, president of Weber Asset Management and author of “Dear Investor, What the Hell Are You Doing?” But the answer to a smooth retirement is not always keeping all your cash in a savings account. “You’ve got to take some risk for the reward later on,” Weber claims.

According to Weber, there are investments to be made in each stage of life, each with their own tolerable risk. The ideal case would be for you to save the most for retirement into mutual stock funds during your 20s and 30s.

As you approach retirement, you can start investing in fixed-income assets, such as bond funds, to lower your investment risks. One other option would be to consider a target-date fund that will automatically adjust your allocation of stocks and bonds as you get closer to your retirement age.