FINANCIAL STRATEGY OF THE MONTH

If you have ever tuned into one of the television stations that talk about investing and finances, you have no doubt been exposed to many different investing philosophies.  In fact, there are probably almost as many investing philosophies as there are folks offering to share them.

With all the clutter and potential confusion, how do you know the way to structure your investment portfolio?

The answer is to identify your objectives and work with someone who can help you achieve them.  However, now that I have said that, let me share with you a concept that many of our clients use – it’s called the 10 YEAR PLAN.

In its simplest form, the 10 YEAR PLAN is designed to divide your investment assets into 2 “piles of money.”

The first pile of money is the “income pile.”  The income pile contains all the assets that you are likely to need over the next 10 years to meet your income and major expenditure needs under normal circumstances.  This “pile” of money includes all the money you will need for income to meet living expenses as well as any purchases that you have planned.  These purchases could be a vacation home, a new car, or maybe an RV or boat to enjoy during retirement.

The 10 YEAR PLAN’S core philosophy is that you should take little or no market risk with these assets since you will be needing them to meet your living expenses and live out your retirement dreams.  These assets should be invested conservatively.

On the other hand, any assets that you don’t need to meet income and major expenditure needs for 10 years may be able to be invested in a market related investment where risk is greater, but so is potential return.

Many of our clients invest these growth assets in a formulaic growth strategy.

To learn more about how a 10 YEAR PLAN may possibly benefit your portfolio, give us a call at 561-744-0500 or toll free 1-866-3ADVISE for a free 10 YEAR PLAN evaluation.