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We won’t settle for average. We continually seek top managers or securities and meld them into superior custom portfolios. Each palette of investments is carefully tailored to personal or family goals. We enlist excellent managers, research, resources, and effort for our clients. Don’t settle for average. You deserve excellence.

Please search our blog posts for answers to common investment questions, and we look forward to sharing our knowledge and experience with you first-hand.

How Does Your Investment Portfolio Look at Age 60?

The State of the Target-Date Mutual Funds in an Investment Portfolio

 

The best investment portfolio goals are long-term in nature. However, as you get into the latter part of your career, it makes sense to start rethinking how your investments are diversified.

Changing your investment strategies by shifting assets to safer places as you get older could be a change you need to make. Does this mean all ofyour stock investments need to be shifted as you near retirement? Not necessarily. We know that there are risks related to investing in stocks, but there are also rewards.  Generally, when one retires, there’s still a need for at least a portion of stocks, just to keep pace with inflation.  So, for many, the changes to investment portfolios near retirement are only slight.


The Target-Date Fund
The advantage of target-date funds is that you can invest in a variety of stocks and bonds that will automatically become more conservative as you age. The closer you get to your retirement date, the more bonds and less stocks you’ll see in the portfolio.

For instance, you can choose a fund that currently invests 55 percent of your assets in stocks and 45 percent into bonds. The bonds will help to ensure that a good portion of your money is safe while the stock investments give your investment portfolio room to grow with the market.  As you age, the fund manager will adjust the portfolio more conservatively.

Exchange-Traded Funds
Exchange-traded funds (ETFs) are similar to mutual funds in that each ETF owns shares of numerous stocks or bonds. ETFs give you the opportunity to customize how you make investments in equities and bonds in a way that are more suitable for your specific goals and your style of investing.

Another advantage is that ETFs offer lower expense ratios than typical mutual funds. And similar to individual stocks, they are actively bought and sold from open to close of the market.

Going Solo
While buying shares of individual stocks could be the best fit for you, that will definitely not be the case for everyone. Although many of the dividend-paying stocks have rallied for a number of years, that also means that many share prices are higher now. Ask your investment advisor about stocks that will give you a good mix of income, value and growth potential.

Build a Strategy With a Professional
Taking the DIY approach to your investment portfolio might feel gratifying, but this is too important an issue to treat it like a hobby. Consider asking an investment advisor for help assisting you in adjusting your investments as you get closer to retirement.

At Family Investment Center, we’ve worked with many clients in situations just like yours, and we have strategies that can provide you with confidence. Contact us today and let’s work toward your goals together.

 

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