Better Business Bureau link
INVESTMENTS
Here we start with basics.
First there must be an understanding of the different
principals of
Asset Accumulation
Asset Preservation
All
Investments have a risk reward relationship.
Asset Accumulation
Asset accumulation takes place during
your prime earning years.
Very simply put these are the years that you are trying to
earn all that you can.
Perhaps you can afford a tolerable amount of risk for the
possibility of reward.
Asset Preservation
Asset Preservation should take place
when you are decidedly leaving your prime earning years or are
entering your retirement years, at this point SAFETY is the
prime motivating factor.
Common mistake-
Failing to make adjustments along the way.
When is the last time your got a 2nd opinion on your
portfolio?
Thought- the months after 911 for
A
40yo person = bad 5-6 years in the market.
70yo person = adjustment in lifestyle.
|
