Getting ready for retirement can be stressful. You may wonder if you’ve saved enough to support yourself, and some people are afraid of outliving their savings. But it doesn’t have to be so complicated. Here’s the simple truth that experts like Scott Tominaga suggest about how to invest smart for retirement:

How Much Will You Need For Retirement?

If you want specifics, consider this: A recent university study uncovered the average amount of money needed to retire. For example, people who retired in 1985 would have spent about $46,000 a year on living expenses if they were still living today. The same university predicts that people will need closer to $69,000 per year for retirement in 2040.

How Much Will You Make In Retirement?

Far fewer people can get by on pension payments from a traditional company, so you’ll have to use your savings and investments. A study published in the Chicago Tribune found that one-third of seniors rely on Social Security payments for at least 80 percent of their income. Social Security payments average out to around $1,300 a month in the U.S. However, if you have a traditional pension plan, it can help you live comfortably in retirement.

How Much Will You Save?

A recent survey from Bankrate indicated that most Americans are not saving enough for retirement. A little more than a third of people surveyed had less than $25,000 saved.

How Much Will You Need?

In 2010, Merrill Lynch projected that a 65-year old couple would require about $240,000 to live on a no-frills basis for the first year of retirement. This includes things like housing and food, but not health care costs or going out to eat. The same study also predicted that a couple would need approximately $64,000 a year after their first retirement year.

What Kind of Investments Should You Have in Your Portfolio?

You need to consider several factors when deciding what kinds of investments you should have in your portfolio. At the very least, here are some guidelines from recent studies:

Stocks: You should have at least 50 percent of your money invested in stocks because these typically earn higher rates of return than other investments. However, be careful with anything over 75 percent because stocks are subject to significant risk.

Bonds: Bonds provide more stability and some upward potential that stocks don’t offer. They also can help reduce your overall portfolio risk, which is good since you want a mix of investments in your portfolio.

A conservative estimate would be 40 percent bonds and 60 percent stocks.

Cash: Keep at least eight months’ worth of expenses set aside for emergencies.

Commodities: You should have around 10 percent of your investments in commodities and other non-traditional products. This can help to amplify the returns on your portfolio without adding a lot more risk.

What’s the Best Way To Invest for Retirement?

The truth is that no one knows what will happen with interest rates, inflation, or the economy over the next 20 years. While this uncertainty can make investing for retirement difficult, there are still ways to ensure you’ll be as safe as possible:

Invest with a financial planner: A financial planner can help you make sense of all your options and develop the best plan for your unique situation.

Invest in an IRA: This type of investment is completely safe, even if you have a small amount of money.

Invest in real estate: There are many benefits of investing in real estate to help your overall retirement plan. You just need to be careful about diversifying your investment options so that one or two bad deals don’t put you at risk.