|Posted: December 27, 2008, 11:17 am - IP Logged|
If a person is 20 or 30, perhaps investing in a long-term financial growth plan would be wise, including putting some of their money investments in a diversified portfolio.
Assuming the above age group will hopefully be employed until retirement, along with their salary increases (if they are still with the same company), and setting aside some money for savings/retirement, that age group should do just fine. However, steady, financial commitment toward growth will be important.
People in their 40s, 50s, or 60s, may have different strategies. When you are 40, a person has approximately 25 years of employment (before they can retire), providing they are in good health. Now, a 40-year old, in my opinion, can't afford to invest aggressively in too many stocks because of the possibility of the fluctuating financial markets -- unless this age group are risk takers. Perhaps, they may shift some their financial priorities toward more conservative investments with high interest bearing accounts -- and more toward savings. Notwithstanding, we don't know if Social Security will be around for the 40-year olds when they retire because they may have to invest in the markets toward their retirement nest egg -- unless Congress takes action in the future.
Finally, people in their 50s or 60s, have a different priority, retirement focus. The later age group, 60s, more so than the 50-year old age group. Most people in their 60s have worked steadily for many years with a company with a profit-sharing plan or some other plan, they have social security benefits forthcoming, and they should have some savings set aside.
Now, this information is not etched in stone as circumstances beyond our control can completely wipe out our future plans, especially in the area of medical insurance coverage. One major catastrophe can wipe out a family's financial bank account even with the best of company insurance. I knew a lady (and I worked with her) whose medical bill was $1 million and the State of New Mexico paid her bill. Of course, after her medical payout, the State of New Mexico placed a sealing on how much they would cover, and you guessed it, no more $1 million medical payouts.
Finally, since we don't have a crystal ball and we can't predict what is going to happen today, tomorrow, let alone future generational financial outcomes, we can only do the best we can by investing conservatively and wisely -- that means --living within our budget.
-- Bye, bye! When you win, may you glow as brightly as the