Best Ways to Save for Retirement

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The best ways to save for retirement include putting away an emergency cash fund, investing in stocks and buying a home or other real estate. As one gets wealthier, hedge funds become a good way to save for retirement with advice from a registered financial consultant in this free video on money management.

Part of the Video Series: Money Management & Personal Finance
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Video Transcript

This is financial adviser Patrick Munro talking about the best ways to save for retirement. Well that question begs the other question saying what is your risk tolerance when it comes to retirement? Basically if you look at your retirement life as a pyramid, you can start from the bottom as the least risky area and that is cash. So if you start putting away an emergency fund, you really can't lose with that, it's always good to have a cash emergency fund on which to fall back on. Next you have stocks and bonds, those are of a higher risk and they each have their own sub coefficients of risk depending on what type of stock and what type of bond. You can educate yourself about that as well. Then as you move up the rank as your home, your home is of course a valuable asset, one of the biggest assets that anyone will ever have but you have to be mindful that you could lose home value especially in a recessionary economy such as the one we're experiencing currently and do through various cycles. Then as it gets up even higher you can be involved in hedge funds and gold and commodities, various other things. Normally these are reserved for wealthy people that can afford the downside risk. This is Patrick Munro talking about the best ways to save for retirement.

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