Curious about Investment Portfolio for 60 Year Old? Here’s the Answer

investment-portfolio-for-60-years-old

Talking about investment portfolio for 60 year old can actually quite troublesome especially for the common people who are facing their retirement. Without any doubt, they definitely want to get the best from their assets and money but what they don’t really understand is the rule in dealing with the percentage of the portfolio. Here, you are going to figure out about the matter mentioned above especially if you want to cope with the investment in stocks. If you are curious about such matter, you better continue reading.

When it comes to the percentage of the portfolio, of course, the hardest thing to do is to determine the percentage itself. Not all people are familiar with financial matters. And yes, such matters can be really troublesome and confusing. But, there has always been some kind of traditional rule which can make things easier for the common people who want to handle their investment portfolio for 60 year old. The rule is to subtract the age from 100. The result is the percentage of the portfolio and you can use such percentage to be kept in stocks. To make things a lot much easier for, let’s take a look at the following illustration. Let’s say that you are 40 year old. If you subtract 40 from 100, you will get 60. It means you should keep 60% in the stocks. Now the problem is, is such rule correct and really works? There are actually several factors to determine whether the rule works or not. If we are talking about a few years ago, such rule may be quite relevant and you can use it. However, by considering the fact that the people seem to live longer and longer nowadays especially if we are talking about American people, the rule should be change to 110 or even 120 instead of 100.

The reason for you the rule to be changed like that is not only about the fact that the people tend to live longer but also related to how the people need to make their money become capable of lasting longer. Therefore, in order to reach such purpose, it is inevitable for the people to provide extra growth which can be provided by the stocks. In other words, the rule need to be adjusted a little and you should be okay with it. Hopefully, the explanation above can answer your curiosity about investment portfolio for 60 year old.

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