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Gro w Y our Retirement Nest Egg

2. Recognize the importance of growing your wealth in more than one
area. If you’re an employee, take full advantage of whatever opportu-
nities your company offers for saving and investment, such as a 401(k),
403(b), or other employer plan, where earnings will grow free of tax
until you withdraw the money. In addition, if you’re employed but
have a part-time business, you can start and contribute to another
retirement plan, too, such as a simplified employee pension (SEP)

IRA, a SIMPLE-IRA, or a Self-Employed 401 (k).

Even if you have your own business, it’s only good sense to set some
money aside for long-term investment. True, entrepreneurs often have the
best opportunities for wealth creation by putting their money into and grow-
ing their own businesses. Yet the risk of failure here can also be high, so it’s
wise to diversify your avenues for wealth building.
Don’t make the all-too-common mistake, popularized in recent years, of
thinking that your home is your best investment, and that it will pay for your
retirement. Your home may well be your biggest asset, and it contributes a lot
to your peace of mind. But just because the price you can get for it today or in
the future may be much higher than you paid, it doesn’t mean you’ve made a
big profit. Reason: A home costs much more to buy and operate—out of

pocket, year after year, aside from tax benefits—than most people realize

because of mortgage interest, taxes, insurance, repairs, renovation, and so on.
Plus, home prices don’t always go up over time.

Seven Smart Ways to Invest for Retirement

I want to put you on the right path toward achieving a wealthy lifestyle in
retirement (whenever that may be). For over 26 years, I’ve been helping peo-

ple build a strong financial foundation for retirement. All too often, I’ve seen

them make mental mistakes that lead to all sorts of fi nancial fiascos. Here are
my retirement rules for steering clear of disasters:

1. Don’t “play the market.” Investing for your fi nancial security is serious
business. In my view, the first and most important step to take is to

adopt the right attitude. By that I mean how you view the world of
investments and the fi nancial markets.
2. Learn to manage risk . Recognize what can go wrong. Actively lower

your risk exposure when necessary, but also get more aggressive when

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