How can you increase your retirement income and avoid risk? Many people simply put their money in the bank. But the good news is that there are other options for reducing risk and generating more retirement income.
While banks present a lower risk than the markets, bank deposits historically have low yields…. Read more
Recently, a couple asked me what they should do with their money in the bank. I hear this question quite often. However, as every individual investor’s situation and circumstances are different, there is no standard response that fits everyone. To figure out an answer for this particular couple, I asked:
What’s the intended purpose of this money?… Read more
At an initial meeting, a new retiree told me, “I’m not really sure what stocks I own.” When I asked how he had put together his portfolio, he explained that some of the positions came from an inheritance, while others… “Well, I’m not really sure,” and a couple of stocks were recommendations from “this guy who sits next to me in shul.” When I asked him if that guy still thinks they’re good stocks,… Read more
If you are looking for an investment with a steady yield that is generally considered more predictable than the stock market, consider buying bonds. To watch a short explanatory video about bonds, go here: Profile-financial.com/bonds.
What are bonds?
When you buy a bond, you essentially lend money to a government,… Read more
What’s the best way to save, and how much money should you save?
Most of the clients that I speak with have saved a lot of money in their U.S. bank and brokerage accounts. As such, we normally talk about the best strategies they can use to invest that money. But for folks who haven’t accumulated a lot of savings,… Read more
Do you want to minimize risk in your retirement accounts? If so, consider diversifying your holdings to include foreign investments.
Investing internationally may boost your returns and minimize risk, as you’re “geographically diversified” and not relying on any single country’s economic performance. Geographic diversification can be achieved by buying foreign stocks,… Read more
Is there a safe investment that carries little risk?
Bonds are often described as a “safe investment” since, compared with other investments, they have a smaller risk of losing principal. However, just because some people call them “safe,” that does not mean they cannot lose money. Bonds are popular because they distribute interest payments on a set schedule,… Read more
What should you do if you receive a lump sum, such as an inheritance, legal settlement, or pension payment? Should it be invested for growth or for income?
Invest for growth
A “growth investment” tries to increase the amount of money you have. Growth investments often entail some level of risk,… Read more
What is risk management, and how does it affect your investment decisions?
Every investment is risky
Every investment carries a chance of making a profit – and a risk of sustaining a loss. However, some investments are riskier than others. Generally speaking, the more profitable investments contain the most risk;… Read more
Premium bonds may be a good investment choice for retirees looking to increase their income. (For solutions to other problems retirees face, download a free copy of The Retirement Planning Book at Profile-Financial.com)
Consider premium bonds
In today’s low interest rate environment, if you park your money in bank deposits or money markets,… Read more
