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February 2, 2007, Newsletter Issue #32: Risky Business: Investing for Retirement


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Tip of the Week

The older you are, the more likely you will take lower risks. When it comes to retirement investing, the younger you are the more you will risk. This is why it is important to begin building your portfolio while you are young. It is widely believed that the higher the risk, the higher the reward- another reason why younger people tend to take more risks. If you begin investing for retirement at an older age, you will be more “risk averse”. Younger investors tend to choose investments such as real estate, options, futures, and collectibles (high risk investments); older investors look for low risk investments such as government bonds, CDs, and bank accounts. However, you can still build a large nest egg, even with investments later in life. You should consult with an investment planner for advice on investing and for help with your retirement portfolio management.



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