How to Build the Best Retirement Portfolio

Retirement may feel far away.

But when it comes to retirement planning and investment strategies, time is in your favor. Think of it like this: “The best time to plant a tree was 20 years ago. The second best time is now.”

It’s much less stressful to address your financial future today than to deal with a lack of financial resources later.

If you’re feeling overwhelmed – or if you don’t know how to invest – you’ve come to the right place! We’ll explain some of the best, most popular retirement accounts and investment strategies.

And if you would like financial planning guidance, we can help with that too!

Let’s start with the basics.

What are some of the best retirement accounts?

 You’re probably familiar with IRAs (Individual Retirement Accounts) and 401(k) retirement plans.

A 401(k) is an employer-provided retirement account.

• You contribute money to your 401(k) account through deductions from your paycheck. Your company may also offer an “employer match,” where it contributes a matching amount (up to a certain limit).
• It’s only available through your employer.
• Investment options may be limited by your employer’s plan.
• There’s a higher annual contribution limit when you contribute to a 401(k) versus an IRA (which you open on your own).
• Some 401(k) plans allow you to take loans from your account before you retire..

You can open IRAs outside of work. When you open an IRA, there are some key differences. Here’s what you should know:

• There are several types of IRAs – the most popular being Traditional or Roth – and anyone can open an IRA (though some have income limits).
• There’s typically a broader range of investment options in an IRA versus a 401(k).
• There are annual contribution limits that are lower than 401(k) accounts.
• You can’t take out a loan from an IRA.
• There are withdrawal limitations based on your age.

In summary, utilize your company’s 401(k) plan and take full advantage of the employer match, if one is offered. But it’s also a good idea to open and contribute to a separate IRA so you can diversify your investment portfolio.

If you decide to open your own IRA, you’ll likely be looking at a Traditional IRA or a Roth IRA. They’re similar, but there are some important distinctions regarding income limits and how the accounts are taxed. We always recommend talking with a financial planner for guidance on which account best fits your needs and goals.

Traditional IRA vs. Roth IRA

Traditional IRA

Taxes: You’ll pay income taxes on withdrawals from a Traditional IRA. A Traditional IRA is tax-deferred, meaning you don’t pay income tax on funds when you contribute them, but when you take them out.

Income limits: No income caps are in place as of 2025.

Roth IRA

Taxes: Unlike a Traditional IRA, you do have to pay income taxes on the funds you contribute to a Roth IRA, but you don’t pay taxes on Roth IRA withdrawals. This is true if:

• You are over 59 ½ years old.
• You’ve met the 5-year holding period.
• You contributed after-tax money.

Income limits: These rules can change, but as of 2025, single filers must make less than $150,000 to contribute to a Roth IRA. Married couples filing jointly must make less than $236,000.

Other popular retirement & investment accounts include:

SEP IRAs (Simplified Employee Pensions) are available to employers of any size business, and it only allows for the employer to contribute funds.

SIMPLE IRAs (Savings Incentive Match Plans for Employees) are only available to businesses with less than 100 employees.

Brokerage Accounts — This is an investment account that is not limited to retirement; you can withdraw money at any time with no penalty. If you’ve reached the yearly contribution limits for your retirement accounts, a brokerage account can be a great place to save even more. It can hold mutual funds, exchange-traded funds, stocks, bonds and more.

How should I build a diverse investment portfolio for retirement?

First, you’ll want to weigh your age, your risk tolerance, the lifestyle you want to have during retirement and how old you’d like to be when you retire. The answers to those questions will help you determine how much you should be investing and the type of investments that will help you reach your goals.

Financial experts generally recommend having a mix of stock and bond investments. This mix should match your risk tolerance and retirement timeline.

A stock represents a share of ownership in a publicly traded company. It’s a risky investment but can also yield high returns.

A bond is essentially a loan. You’re lending funds to a government or company, which pays you interest on your investment. You face less risk because you expect to receive your initial investment plus interest once the fund matures.

With so many investment opportunities, it’s hard to know where to start and what to select – which is why mutual funds are a great option. A mutual fund pools money from investors; a fund manager buys the investments, which can be stocks, bonds, real estate, commodities, precious metals and more. It’s an easy way to diversify your portfolio and there are mutual fund options available for IRAs.

How can a financial advisor help me?

Even if you understand investing basics, it can still feel overwhelming to build out your retirement and investment portfolios, and that’s why having a financial advisor is so valuable.

As a member of Buckeye State Credit Union, you can access a financial advisor thanks to our partnership with a local firm. Our advisor has a lot of experience and offers services that can help you manage and build your wealth.

Every financial advisor is unique, and many offer special services. Generally, a financial advisor can help with money management, investing, retirement planning, education funding, wealth distribution and more! Some even hold licenses in disability income, life and long-term care insurance to help you protect the assets you have.

Your advisor will get to know you, your situation and your goals for the future. They can help you make a plan to reduce debt and build your investment portfolio – giving you peace of mind and the confidence you need to develop a strong financial plan.

Ready to get started?

Like we said before, “The best time to plant a tree was 20 years ago. The second best time is now.” If you’re ready to build an investment portfolio and gain some new insights into wealth building, get in touch with us!

You can explore our investment services and get to know our financial advisor.

Have questions?

Don’t hesitate to reach out to us! We can walk you through your options for debt consolidation and personal loans.

• Find a branch near you and talk to us in person.
• Call us: (330) 253-9197
• Or send us an email: support@buckeyecu.org