Can you tolerate stock market fluctuations? How are your assets invested? Typically, there are five investment risk categories or styles - conservative, conservative to moderate, moderate, moderately aggressive amd aggressive. Each category is driven by the individual's objective which simply means, what do you want your money to do for you?
You are a conservative investor if your objective is to preserve the amount of your investment, referred to as the principal or cost basis. Investors in this category want their money to grow in a vehicle that pays a fixed rate where the principal and interest are guaranteed. The investment vehicles in this category are savings accounts, money market accounts, money market funds and certificates of deposit (CDs).
Knowing your objective will determine the investment options for you to consider and there are many. There are three major asset classes- stocks, bonds and cash or cash equivalents. There are lower risk investments, investments with higher returns, tax-advantaged vehicles that can be tax-free, tax-exempt or tax-deferred and annuities. Destination Points- A Values Driven Journey, now available at Amazon, Barnes&Noble and http://www.viacompass.com/ gives you a working knowledge on all of these topics.
Next post: The Conservative to Moderate Investor
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About Me
- zoni
- I'm your next door neighbor with serious concerns about our America. Most people have been silent about things that matter because they do not have the facts. This blog's mission is to educate you about the issues that impact your financial security, your health and your values. In the words of Dr. Martin Luther King, "Our lives begin to end, the day we become silent about things that matter". Speak the truth. Be empowered and stand on the facts. Rise in righteous indignation and together we can effect the change to take back America.
Saturday, March 10, 2012
Thursday, March 1, 2012
Is A Curved Ball Coming Your Way?
Life’s journey is not without detours and roadblocks that set us back when caught unprepared. Have you planned for the financial crises in your life?
Here are some life events that come with a high price tag:
Job Loss
It used to be that a job equates to security. In the aftermath of the financial crisis of 2008, unemployment could last up to three years or more. Are you prepared for the challenges of losing a job? The old rule to have emergency cash reserves equivalent to 3-6 months of living expenses no longer holds. It’s more realistic to have 8 months to a year of reserves to maintain your lifestyle if you lose your income.
Disability
Have you ever thought about how you will keep the financial wheels of your household running when you can’t work due to an illness or injury? Did you know that people are likely to be disabled rather than die during their working years or miss at least 3 months of work due to injury or being sick? Social Security Disability Insurance (SSDI) can pay you benefits but only if you are severely disabled and expected to remain so for at least 12 months. Your employer may provide some disability insurance coverage but would it replace at least 70% of your income?
Pre-mature Death
Generally, if you have someone depending on you, the death benefit of life insurance provides guaranteed financial protection in the event of your death. Have you done your personal financial planning to allow for other assets to meet the financial needs of those who depend on you?
Other Emergency Needs
These include car and home repairs, medical costs not covered by insurance and unbudgeted expenses. Do you have adequate cash reserves to cover such financial emergencies?
These are just a few of the challenges in your journey to be financially stable. It’s time that you take charge. Get your compass to a secure tomorrow – Destination Points: A Values Driven Journey, more information at http://www.viacompass.com/
Here are some life events that come with a high price tag:
Job Loss
It used to be that a job equates to security. In the aftermath of the financial crisis of 2008, unemployment could last up to three years or more. Are you prepared for the challenges of losing a job? The old rule to have emergency cash reserves equivalent to 3-6 months of living expenses no longer holds. It’s more realistic to have 8 months to a year of reserves to maintain your lifestyle if you lose your income.
Disability
Have you ever thought about how you will keep the financial wheels of your household running when you can’t work due to an illness or injury? Did you know that people are likely to be disabled rather than die during their working years or miss at least 3 months of work due to injury or being sick? Social Security Disability Insurance (SSDI) can pay you benefits but only if you are severely disabled and expected to remain so for at least 12 months. Your employer may provide some disability insurance coverage but would it replace at least 70% of your income?
Pre-mature Death
Generally, if you have someone depending on you, the death benefit of life insurance provides guaranteed financial protection in the event of your death. Have you done your personal financial planning to allow for other assets to meet the financial needs of those who depend on you?
Other Emergency Needs
These include car and home repairs, medical costs not covered by insurance and unbudgeted expenses. Do you have adequate cash reserves to cover such financial emergencies?
These are just a few of the challenges in your journey to be financially stable. It’s time that you take charge. Get your compass to a secure tomorrow – Destination Points: A Values Driven Journey, more information at http://www.viacompass.com/
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