SigMT Volume 11 Issue 3

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Page 95 of 115

SiG MT 96 FACT S ON FIN ANCE Article provided by Stifel - Sharon Hancock As young adults, investors have a lengthy time horizon and, therefore, can assume greater risk than those nearing or in retirement. However, many people at this stage are trying to save for the down payment on their first home, which makes it difficult to concentrate on long-term investments. Investors in this age bracket may opt to take advantage of short-term, fixed income securities when saving for a house, while taking advantage of contributing to an individual retirement account (I) and/or their employer's 401(k) to plan for their long-term goals. In addition to potentially having more funds during retirement, establishing a retirement savings plan as a young adult can be a good idea, because it enables the investor to begin investing before he or she becomes accustomed to spending 100% of his or her take-home pay. e mid-thirties to late-forties can be a very busy and hectic time for most people. It is during this time that families are being raised and careers are hopefully thriving. By this stage in life, investors should already have embraced a successful retirement saving strategy. Tax- advantaged investing, such as contributing to a 401(k) plan or an I, may be one of their beer options. With these methods, they can accumulate funds for retirement while deferring taxes until distribution. For those with young children, taking advantage of college savings programs may also offer significant tax benefits. It is during this stage in life that most people may want to consider insurance as well, especially if they have families. How much life insurance is appropriate and what type of policy is best depends entirely on an individual's personal needs and situation. ere are a number of policies available in today's market place, such as permanent life and term life policies (each with different features and benefits), which investors can consider. As an investor approaches retirement, they'll most likely want to begin thinking of a less risky route of investing, such as reallocating more of their investments to bonds or cash investments versus stocks. We all look forward to the day when the fruits of our labor will hopefully pay off, and we can sit back and enjoy our retirement years. If an investor has adequately prepared for retirement, he or she should be able to not only enjoy retirement, but also have some wealth to pass on to heirs. As investors enter retirement, they may want to explore various estate planning options, such as establishing a will, exploring the benefits of a living trust, and giing some of their assets before their death. Investors should consult with a well-informed estate planning aorney to determine what steps they need to take in order to preserve their accumulated wealth for future generations. For more information on making proper allocations for the different stages of your life, contact your investment professional today. Article provided by Sharon Nalivka Hancock, Branch Manager, Vice President/Investments with Stifel, Nicolaus & Company, Incorporated, member SIPC and New York Stock Exchange, who can be contacted in the Great Falls office at (406) 761-3500. Investing rough Life s we travel through different stages in our lives, our goals and needs change. And as our goals change, our financial plans and investments must coincide with those changes. S MT A

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