When it comes to retirement investing, it’s easy to get overwhelmed by the options. From index funds to tax strategies, the advice can seem endless—and contradictory. But the most reliable truth? Your investment decisions should be rooted in your financial goals, not just your age.
1. How to Choose Retirement Investments
The simplest place to start is with low-cost ETFs (Exchange Traded Funds) that mirror the broad market. These options often outperform actively managed mutual funds over time due to their lower fees and diversified exposure.
Target-date funds are another popular choice. They automatically adjust your asset allocation as you approach retirement. But there’s a catch: they rely mostly on your age rather than your actual financial needs.
“Your age shouldn’t determine your asset allocation—your financial goals should.”
The real secret? Understanding what you’re asking your investments to do. Are you looking for maximum growth, stable income, or a strategic mix of both? That’s where a customized asset allocation—ideally guided by a financial professional—makes the biggest difference.
“What you’re asking your investments to do should determine your strategy—not just your age or a one-size-fits-all solution.”
2. Retirement Investments for the Self-Employed
If you’re self-employed, you face a unique opportunity—and responsibility. You have access to retirement accounts like:
- Solo 401(k)s
- SEP IRAs
- Traditional or Roth IRAs
These accounts not only help reduce your taxable income now but can also be structured to support your long-term growth.
But just like with employer-sponsored plans, the investments within these accounts matter. A professional advisor can help go beyond default fund choices to craft a mix of ETFs and, when appropriate, hand-picked individual stocks that offer strong long-term potential and align with your values or sectors you know well.
“Being self-employed doesn’t mean you have to go it alone—smart retirement planning is available to you too.”
3. Retirement Investments for High-Income Earners
High-income earners face a different challenge: tax efficiency. One commonly discussed tactic is tax-loss harvesting—selling investments at a loss to offset gains. While it can be effective, it comes with trade-offs:
- It only works if your investments drop enough to sell at a loss.
- You might miss future growth if you exit too early.
- Timing the re-entry can be difficult.
The deeper issue? If you’re selecting great long-term investments, they should be growing—not losing.
“The growth is what pays the tax. Being afraid to render unto Caesar what is Caesar’s isn’t how to manage a portfolio.”
A better approach is to leverage tax-advantaged accounts (like Roth IRAs, 401(k)s, HSAs), where gains grow tax-deferred or even tax-free. This creates space for strategic trading and compound growth—without the immediate tax consequences.
For high earners, professional portfolio management opens up the door to more selective investment strategies. Rather than owning a slice of everything in a fund, a skilled advisor can handpick individual stocks that show promising fundamentals, strong dividends, or tax advantages—something most “set-it-and-forget-it” funds don’t provide.
“A professional portfolio manager doesn’t just buy the market—they can be choosy, avoiding sectors with weak prospects and targeting companies that align with your long-term vision.”
Final Word: Consider Hiring a Professional
While it’s tempting to DIY your retirement investing, the truth is that a skilled financial planner can tailor strategies to optimize reliable income, tax planning, and long-term growth.
Beyond that, they can make nuanced decisions—choosing individual securities when it benefits you, managing risk, and navigating the tax implications that funds alone can’t solve.
“What you’re asking your investments to do should determine your strategy—not just your age or a one-size-fits-all solution.”
If you are ready to discuss your retirement goals, schedule a meeting with one of our advisors so we can determine the best path toward stewarding what matters most to you.
– Michael S. Proctor, CERTIFIED FINANCIAL PLANNER®, RICP®, CVGA
