Estate Planning Blunders of the Rich and FamousJohn Petrick (319) ![]() ![]() John Petrick ![]() Perennial Financial Services Investing for the Times of Your LifePosted Monday, May 05, 2008 (64 days 10 hours ago.) Viewed 22 times. Time and Risk Tolerance All investing involves a certain amount of risk. How well you tolerate price fluctuations in your investments will need to be balanced against your required rate of return to determine the amount of risk your investments should carry. An offsetting factor to risk is time. If you plan to hold an investment for a long time, you can probably tolerate more risk because you have the time to make up any losses you may experience early on. For a shorter-term investment, such as saving to buy a house, you probably want to take on less risk and have more liquidity in your investments. Sample Asset Allocations - Portfolio Risk Level
Bonds are subject to market and interest rate risk if sold prior to maturity. Bond values will decline as interest rate rise and are subject to availability and change in price. Stock investing involves risk including loss of principal. This table illustrates hypothetical portfolio asset
allocations for investors with the following risk profiles:
These allocations are presented only as examples and are not intended as investment advice. Please consult a financial advisor if you have any questions about how these examples apply to your situation. Investing for Life's Stages Although each individual's attitude toward investing is different, most investors share some common situations throughout their lives. For instance, where you are in your life cycle certainly affects how you invest for retirement. Following are some major life events that most of us share, and some investment moves that you may want to consider: When you get your first "real" job:
When you get a raise:
When you get married:
When you want to buy your first house:
When you have a baby:
When you change jobs:
When your children have moved out of the house:
When you reach 55 years of age:
When you retire:
Discipline and a Financial Consultant Can Help One of the most difficult things about investing is
disciplining yourself to save an appropriate portion of your income regularly
so that you can pursue your investment goals. And if you're not fascinated with
investing, it's probably also hard to force yourself to review your financial
situation and investment strategy on a regular basis. Establishing a relationship
with a trusted financial advisor can go a long way toward helping you practice
smart money management over your entire lifetime. This article is
not
intended to provide specific advice or recommendations for any
individual.
Consult your financial advisor, with questions. John Bennett Petrick
and the
representatives of Perennial Financial Services are registered
representatives
with and offering securities through LPL Financial, Inc.
Member FINRA/SIPC. LPL Financial representatives offer access
to Trust services
through The Private Trust Company N.A., an affiliate of LPL Financial, Inc. CA Insurance License #0E03441 Permalink Comments (0) |
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