Investing
Through the Ages
As you go
through different stages of life, your financial
goals will likely change.
As they do, the choices you make with your investments
could shift as well.
Young Investor
18 - 30
Your primary focus is getting your career on track.
Maybe you're also trying to pay off student loans,
or put money away for your first house. Retirement
is probably the last thing on your mind, but it
shouldn't be. With the power of compound interest,
saving even a small amount can give you a head
start at reaching your long-term savings goals.
With more time to weather the ups and downs of
financial markets, a portfolio weighted heavily
in equities may be appropriate.
Married with
Children 30 - 45
Your primary focus is getting your career on track.
Maybe you're also trying to pay off student loans,
or put money away for your first house. Retirement
is probably the last thing on your mind, but it
shouldn't be. With the power of compound interest,
saving even a small amount can give you a head
start at reaching your long-term savings goals.
Since you still have a fair amount of time until
retirement, your investment strategy should be
focused on growth. With more immediate goals,
such as next year's vacation, less risky investments
are generally more suitable.
Age of Maturity 45 - 55
You're at the height of your career and earning
potential. However, financial demands may also
rise as you put your children through college,
provide care for an elderly parent, or both. Nevertheless,
this is not the time to let your retirement savings
falter. If you couldn't save for retirement while
paying tuition bills, make retirement your top
priority now. As you continue to save for retirement,
there's still a place for equities in your portfolio.
However, you should meet regularly with your investment
representative to determine the appropriate asset
mix.
Empty Nester
55 - 65
With your educated kids out of the house and perhaps
the mortgage paid off, now is a good time to focus
even more on retirement savings. As you move from
growing your assets to living off of them, your
asset allocation should shift from growth to a
balance of growth and income investments.
Retiree 65
+
You've worked hard and have earned the right to
enjoy yourself. You've probably changed your investment
objective from asset accumulation to asset protection,
and therefore, lower risk, income-producing investments.
Thanks to increasing life expectancies, you still
may want some equities to allow for growth potential.
Reviewing your portfolio regularly is critical
to help reduce the risk of outliving your assets.
Give
the professionals at American Business Insurance
a call so that they may put together a Financial
plan for you and your familiy.
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