Let's assume that you have not started to invest at all up to now but you can see the need for it and you also have the ability to do so now. That's code for "I have the need and I have the money now." First, I would say to look at your debts. If you have debts, then the interest rate on any of those will reduce any interest rate on an investment that you jump into. A 5% rate on a debt and a 5% rate on an investment will fail to do what you want, so get rid of significant debt if you can, first. Next, you have options and at 46, you are in a spot where you want to make up lost time so you may think to be aggressive with investments. The problem, at 46, is that with high risk for high reward, you may risk and lose - with a short time line for recovery and eventual success.
Another suggestion is to look at your possible retirement age. If you are self employed, you can retire later, which means you can keep creating new income until you want to stop or can't anymore. From 46 till you are ____ will determine your earning years. Your annual income multiplied by your earning years will give you some sense of what the years between now and then are worth to you. Subtract living expenses, and from what is left, you can fill the retirement pot. Then, you have to look at what to do with those retirement dollars which won't grow themselves.
Your personal situation will dictate much of what you do,, but if you have the dollars, try maxing your T/IRA; that will put the money under an interest rate, and at the same time, reduce your taxable gross by thousands. The T/IRA, in an indexed annuity will help with "what happens if I run out of money and still have some living to do?", since annuities are designed to continue to pay you every month until you leave the planet (annuities are an insurance product, not technically an investment). Indexed annuities and indexed life insurance can both work as places to put money that have advantages for someone who needs growth, but needs "no loss" vehicles to accrue retirement funds. Is there more? Of course: stocks, mutual funds, and other investment vehicles exist but you can see how I am suggesting the least risky approaches as first steps.
Hope it helps,
| 03.15.16 @ 20:46