Five Tips For Folks Over 50

Print

As you get older, your investment strategy changes. Here are 5 tips for those entering their silver years:

1. Keep some investments in stocks or growth mutual funds. They typically outpace other types of investments and are the best way to beat inflation. Historically, stocks have provided more than twice the total return of long-term government bonds.
2. Know the affect of interest rates on fixed investments (e.g., bonds). As interest rates rise, bond prices fall and vice versa. So the value of your bonds may be higher or lower than their original face value if sold prior to maturity. Interest rates also affect the net asset value of bond fund shares.
3. Don't pass up investments (e.g., 10-year Treasury notes) just because you think they could last longer than you do! Your heirs can decide later whether or not to keep various assets.
4. Make the minimum withdrawals required from tax-deferred savings plans (e.g., IRAs, or individual retirement accounts).
5. Review life insurance policies to determine if you still need coverage.

For more retirement planning and investment advice, e-mail a Provident Financial Consultant* or call (650) 508-7222 or (800) 656-4096. Provident offers a full range of Investment and Retirement Planning services.