Review Your Investment Portfolio

Ah, the dreaded investment portfolio…

The general rule is that you should have a conservative approach the older you are. Though a lot of people think that the stock market is going up, that’s not historically true. Make sure you have enough fixed-income assets so that if the market does drop 20% or even 25%, you’ll be covered. Now’s not the time to make big plays- keep it safe!

But how do you balance your portfolio? Use the 120 rule. Subtract your age from 120 to figure out how much of your portfolio should be in equities with the rest in safer assets. 120- 55 (if you’re 55) means that you can afford 65% in equities with the remaining 35% in fixed income.

You may have heard that you should actually subtract your age from 100 instead, but that number has shifted to account for longer life expectancy.

Worried about low-interest rates that are stifling returns for fixed-income investments like treasuries, CDs, and bonds? Welcome to the club, sadly. One ‘fix’ for this is setting up an income annuity instead!