to $2000. Note: IRA rollovers can be tricky and if not carefully reviewed could wind up costing the investor.A retiree can look forward to his/her Social Security and a pension plan or annuity (401k, SEP, IRA). Will this be enough? Possibly, but do you in retirement want to travel? Afford in-home health care or a retirement home when the need arises? Do you want to enjoy retirement or just live through it? I would like to enjoy a bounty, live better than we do now, be able to travel to visit grandchildren, go to Florida every winter, etc. How can we retire wealthy? By making wise, educated investments. Table 2. Expected returns In Table 2, we can see how far $50 a month can go if you start at age 25 and continue until retirement assumed at age 65. In the same table we can contrast that with investing at age 45 until retirement with $250 a month. This table represents the importance of investing at an early age as well as the necessity of the stock market yields of 12% over the course of 15 20 years. Every investor is an individual and every investor has a different risk tolerance level. An investors risk tolerance is level of comfort an investor has with each investment. Several generalizations can be made about investors risk tolerance, some of which are: younger investors are more inclined to risk, while older investors seek security and less risk; education is empowering, an educated investor knows that over the course of 15 years the stock market out performs alternative investments and risk is always fluctuating.An investment portfolio should always be diversified. A diversified portfolio consists of at least 20 40 different stocks, bonds, etc. Diversification reduces market risk by 60%. A portfolio should take into account the allowable time horizon as well as risk tolerance of the investor. There are several portfolio styles, aggressive growth, growth, balanced, conservative, and short-term. An aggressiv...
