Retire VA 2019 - 12

The amount placed in each bucket will
be determined by your views on risk, your
need for growth and your budget.
The SPECIFIC INVESTMENTS available
to place into these buckets are many
and varied. Some of the strategies can
get pretty complicated. A couple basic
investments are stocks, bonds or funds
that hold a variety of them all in one
place. INDEX FUNDS are low-cost options
that are not actively managed, so they
let you keep more of the money that they
make.
MUTUAL FUNDS are actively managed
by a fund manager who gets paid for
their efforts before distributing any gains
to you. Active management strives to
outperform the market, but look for funds
with good long-term track records, not the
ones that are top performers one year but
bottom of the pile the next.
12 / Retire-VA.com / RETIRE-VA 2020

ANNUITIES have received a lot of press
for being both complicated and expensive
as well as for generating commissions that
line the pockets of those who push them
on people at dinners. They can however
be appropriate investments in a portfolio.
Their purpose is to generate an income
stream. The guarantees that many of
them offer is like income insurance. Those
guarantees cost money and there may be
penalties if they are not used properly.
Be sure you understand the costs as well
as the benefits before you decide if an
annuity is appropriate for you.
There is plenty of software out there with
questionnaires and guidance to help you
in your planning and investment selection.
And, of course, there are Financial Advisors
and Certified Financial Planners who can
help with your questions as you prepare to
enjoy the retired life.
Retire VA 2019

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