Tuesday, September 2, 2014, AM | Leave Comment
Folks in the U.S. and elsewhere are constantly trying to set their financial priorities straight. However, experts suggest it should not be done too frequently. When you, with the help of your financial adviser, develop a saving and investment strategy, you should do it for the long haul. But don’t take anything for granted.
Visit and revisit your portfolio on a regular basis, perhaps once in six months.
Having said that, your saving and investment depend on your income and age. The portfolio that you probably set when you were in your 30s may not work for you in your 50s.
So the investment strategy ought to depend on your age with potential increase in your income as you grow older and wiser.
I have talked about saving and investment and retirement as well on these pages.
The following is a reminder one more time what your portfolio should look like at different stages of your life.
In your 30s: Long-Term Goals
- Choose moderately high-risk investments.
- Begin aggressive savings for retirement.
- Buy adequate life insurance.
- Buy adequate disability insurance.
- Establish an estate plan.
- Plan for your children college education.
- Beware of collect debt.
In your 40s: Size up your retirement needs
- Lower your investment risk to moderate.
- Project your annual retirement income and expenses.
- Keep retirement funds growing.
- Teach your children about money.
- Monitor your parents’ finances.
- Beware of high-risk speculation.
In your 50s: Short-Term Goals
- Choose moderately low-risk investment.
- Estimate retirement income.
- Plan the specifics of your retirement.
- Fine-tune your estate plan.
- Consider establishing trust.
- Evaluate the future of your career.
- Be wary of early retirement.
- Beware of scams, scums, and schmucks.
In your 60s: Short-Term Goals
At this age, it used to be that you would have retired by now. You would have been thinking about what to do in retirement, pick a hobby or just relax by the pool in summer, of course. Not any more. You might think about continuing your job and delaying your retirement till you were sure and ready for a comfortable retirement.
In a Nutshell
Always beware of too much advice. Keep carefully evaluating major financial commitments that are marketed to people at any age especially when you get closer to retirement. Be wary of living trusts, pension-maximization insurance, nursing home insurance and investments that offer extravagant yields.