Friday, July 17, 2009
Financial Stability versus Growth at Retirement
Apple will be announcing its results in a couple of days' time. This is one of the best high growth stocks in the world today. As a retiree, we need to be careful with how we invest our hard earned money. Stock investment, while one of the better way to ensure growth in the future, is always a risk. Therefore, we need to diversify our investment so as not to be caught in any downturn.
What are the investment options available? It depends on your tolerance for risk. Besides equity, there is bonds, ETF, unit trusts, hedged funds, etc. See your financial planner for a comprehensive plan that will also include insurance, hospitalization and disability coverages.
A good planner is one who is not product oriented ie, he/she does not represent a class of product from a company. Otherwise, the planner will be more loyal to the company who employed him/her. Instead, the planner should have the interests of the client at heart. Only after the whole plan has been discussed and agreed with the planner will the planner implement the plan with the right financial products. A good planner will also balance your need for financial stability vs growth (translated into high risk). Higher risk equals higher costs products which in turn will offer higher compensation for the planner.
Finding a good planner is not easy. You need to interview for the right one as if you are looking for investment partner. Do your homework.
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