The I.Q.D. Team Connection
  • Welcome
  • Iraq News Current
  • PRE & POST RV Information
  • Market Place
  • Twitter Feed
  • Join Our Mailing List
  • Future Of Iraq Project & Other Links
  • The IQD Team Connection Blog & Announcements
  • Quick Links
  • Conf Calls: Recordings
  • Contact Us
  • Financial Planning
  • How to Choose A Financial Advisor
  • Private Bankers: Contacts & Websites
    • Private Bankers - Articles of Interest
  • Computer Security
  • Dinar Dealer & Exchange Info
  • Public Record Sites - Background Checks FREE
  • Real Estate
    • Landlord Tenant Laws & Information
  • Documents: Gifting
  • In Loving Memory of Tim
  • Health & Wellness Blog
  • Health Wellness Products
  • In Loving Memory of Linda

4 Important Words: How Should I Invest?

1/8/2012

0 Comments

 
_
4 Important Words: How Should I Invest?

Posted on February 21, 2011 by Manisha Thakor

If you were getting ready to go out for the evening, would you ask yourself what you planned to wear without thinking of where you were heading? Of course not, because the clothes you’d wear to shovel snow would be very different from those you’d wear to a wedding.

The answer to the question, “How should I invest?” is often given a one-size-fits-all response when it’s anything but. To protect yourself, here are 5 things to think about to make sure your hard-earned money is invested appropriately.

1. When Do You Need To Spend That Money?If you’ll need to access this money again within the next five years, you’ll typically want to protect that money against inflation by putting it in savings accounts, money market funds or accounts, or CDs, rather than taking on market risk that stocks or bonds.

2. Do You Have Any Outstanding High-Interest Debt?If so, paying off that debt may be the best investment you can make, as it gives a “guaranteed” return—especially when interest rates on savings vehicles are so low.

3. How Steady Is Your Income?A professor with tenure may feel more comfortable taking higher short-term risk than an entrepreneur with variable cash flow.

4. How Old Are You?The older you are, the less time you have on your side to bounce back from volatile markets, so the more conservative you’ll want your portfolio to be. For women, a rough rule of thumb is to take 110 minus your age to arrive at the ideal maximum percentage of your portfolio in stocks. For example, if you’re a 40-year-old woman, 110 minus 40 equals 70. So, up to 70% of your portfolio could be in stocks and 30% in bonds (for men, use John Bogle’s oft-quoted 100 minus your age…because men generally have shorter life spans).

5. Are You Actually Interested In Investing?Unless you are inherently passionate about picking individual stocks or studying active money managers, I love target-date retirement funds or low-cost index funds and ETFs. My favorite basic “portfolio recipe” comes from Boglehead Mel Lindauer. His recommendation: For the percentage of your portfolio devoted to stocks, put half in a total U.S. stock market index and half in a total international index. For the portion that goes into bonds, put half in a total U.S. bond market index and half into Treasury Inflation Protected Securities (“TIPs”) via funds, ETFs, or direct purchases. From there, you can add some additional investment spice in the form of REITS or commodities, but for most people, this core recipe will do just fine.

Bottom line: Always remember that before anyone can give you meaningful investment guidance, they need to understand where it is that you specifically want to go.


Source Link


0 Comments



Leave a Reply.

    Health Products Favs
    Health Books
    Picture
    filterfluoride
    IGNITEChewable Energy
    Get younger skin the natural way with Chews-4-Healthâ„¢
    Picture
    Picture
    Liquid Zeolite
    Health Books
    Health Products FAV
    Picture
    Get 50% off Vetisse Jimin Ointment

    Categories

    All
    Articles Of Interest
    Automobile
    Banking
    Banking Laws
    Banking Tools
    Books
    Budget Tips
    Business Start Up
    Calculators
    Calling Help Google
    Cashing In
    Cashing In Info
    Cdars
    Changing State Residency
    Charities
    Check Authenticity Of Dinars
    Computer Security
    Con Men
    Credit
    Credit Cards
    Currency Classifications
    Currency Exchange
    Currency Trading Forex
    Debt
    Delarue
    Dinar Dealers - Check Out License
    Dinar Information
    Email Accounts Set Up
    Entities
    Entities Help
    Fair Debt Collection Practices Act
    Financial Planning
    Financing
    Fincen
    Forex & Currency Converters
    Fractional Banking
    Free
    Free Calling
    Fun
    Gifting
    Health & Wellness
    Home Ownership Help
    Home Safety
    Identity Protection
    Insurance
    Internet Crime Center
    Investing
    Iraq Investing
    Iraq News
    Iraq Stock Exchange Isx
    Lop
    Misc
    Modern Money Mechanics
    Money
    Money Financial Planning
    Money. Financial Planning
    Mortgage Scams
    Mr Anonymous
    Music & Inspiration
    News Sources
    Phone Security
    Post Rv Checklists
    Preparedness
    Pre & Post RV Daily Postings
    Privacy
    Private Banking
    Questions To Ask Professionals
    Real Estate
    Retirement
    Rfid Be Aware
    Safes
    Scam & Fraud
    Scam & Fraud
    Security
    Self Help
    Sent In By Our Listeners
    Shopping
    Straight Talkin Mike
    Sudden Wealth
    Tag Account
    Taxes
    Telephone
    Travel
    Twitter
    Veterans Assistance
    Words Of Wisdom

    Garden of Life