2006-06-13 10:20:47 · 7 answers · asked by L G 1 in Business & Finance ➔ Investing
As you get closer to the 55-65 age range, you need to be more careful with your investments and reduce risk. This is because you have less time left in life to recover any losses and due to less income from work. You may be going into a "fixed income" situation and need to live on Social Security or a pension. Therefore, you can't afford to take a big hit in stocks.
I suggest a balanced portfolio of stock funds and bond funds as well as a money market fund. You want to pick funds that perform well in bear markets. As you grow older; you move money out of stocks and more into bonds and money funds. Fidelity and Vanguard have several outstanding no load and low load funds. Less than 10% of your portfolio should be in individual stocks at age 65.
In addition, you may want to consider annuities. One popular new product is the "Equity Indexed" annuity. This allows you to bear zero risk of loss and participate in the return on the S&P 500 or some other market index. You need to be sure to buy from a strong insurer and to only put in money you don't need to live on as an annuity is a long term product. An annuity can provide a lifetime stream of income if funded properly.
I suggest you meet with a financial planner. This person should be a CPA, EA, CFP, or Chartered Financial Consultant. They can be fee only or work on commission. You need to ask lots of questions when hiring one. Good Luck.
2006-06-13 10:36:26 · answer #1 · answered by exirsman 5 · 0⤊ 0⤋
If you are planning on living off your investment returns, you would quite possible have starved in the last week or so. There has to be some source of income which you can count on in the short term. Stocks do not provide good short term security.
2006-06-13 10:25:23 · answer #2 · answered by Nelson_DeVon 7 · 0⤊ 0⤋
It all depends on what the market is doing at the time of retirement. the best ones would be the ones you invested in 40 years ago and are reaping the benefits of now.
2006-06-13 10:22:58 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Treasuries
2006-06-13 10:29:50 · answer #4 · answered by Irish 7 · 0⤊ 0⤋
you shouldn't wait until retirement to invest your money, you should be investing whenever you can like in your 20's
2006-06-13 10:24:42 · answer #5 · answered by ab_oldgal 2 · 0⤊ 0⤋
I can give you advice.
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2006-06-13 13:44:05 · answer #6 · answered by Anonymous · 0⤊ 0⤋
stocks with good dividend history.
2006-06-14 05:46:49 · answer #7 · answered by sam 3 · 0⤊ 0⤋