Investment Tactics Depend on the Age Difference
In recent months, the stock market has rebounded, but most of our nest eggs have still lost a lot of money since the market topped out in 2007.
Alas, there's no such thing as a risk-free approach to rebuilding your nest egg. Super safe may feel nice, but it pays no returns over time. A few of us are in a position to live off a super-safe approach, but most of us are trying to figure out how to get back on track.
Figuring out how to deal with your retirement portfolio depends on where you are in your life. Time is perhaps the most important element in building or rebuilding a portfolio. That's one reason we're breaking down this nest-egg analysis into age groupings, aiming to give people some ideas that suit their current situation.
If you are under 40, consider yourself lucky. Two things are working in your favor. First, time-if you have enough of it-can heal wounds. The stock market will eventually recover and grow. Second, by saving early-which you should definitely be doing-you get the benefit of compounding, wherein early gains are built upon.
You also want to take a long view of the investment arena. A lot of growth in coming years is expected to come from overseas, especially in emerging markets. Tim Medley of Medley & Brown Financial Advisers in Ridgeland, Miss. says, "clients should have at least 35% of their stock holdings in non-U.S. stock funds".
你还应该长远地看待投资地点。预计未来几年的很多增长将来自海外，特别是新兴市场。密西西比州 Medley & Brown Financial Advisers的麦德利说，“客户应该至少有35%的股票资产投在非美国股票基金上”。
In terms of risk, emerging-markets funds are more volatile than overseas funds that focus on developed economies like Japan or Western Europe. That volatility is emblematic of the risk in this cohort of funds. But as a younger investor, you want to have a bit more risk exposure, since greater risk tends to translate into greater returns over the long term.
Also, given your long-term outlook, the drop in share prices is an opportunity. Great long-term investors, such as Warren Buffett, believe that U.S. stock prices are still a relative bargain, even after the recent bounce-back in the major averages.
"For younger people, the best place to be is in well-selected stock mutual funds," Mr. Medley says.
40 to 55
Once you enter this age range, you are starting to move from the aggressive stance of your youth to something a bit more measured. At the same time, you are entering a very important savings period since you likely are at the height of your earning power.
"First, people have reacted to the market downturn by reducing the amount of money they' re saving and investing," says Mark Bonhard, an investment adviser with Dawson Wealth Management in Cleveland. "Second, they've started changing their strategy without good reason.
克利夫兰Dawson Wealth Management投资顾问伯恩哈德说，“首先，人们通过减少储蓄额和投资额对市场的低迷作出了反应。其次，他们开始在没有充分理由的情况下改变策略。内容来自 听力课堂网：http://www.tingclass.net/show-9452-328852-1.html