Very few people stumble into financial security. For most people, the only way to attain financial security is to save and invest over a long period of time. If you’re not sure where to begin with investment planning, we can help!

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Two Ways Your Money Can Work For You:

The reward for taking on investment risk is the potential for greater returns. If you have a financial goal with a long-term horizon, higher-risk assets such as stocks or stock mutual funds may be appropriate. Stable value investments such as cash, FDIC insured CDs or short-term investment grade bonds have lower risk and may be appropriate for short-term financial goals.

Risk and Return

To “balance” your portfolio’s risk and return, an investor should consider allocating their funds among three main asset classes – stocks, bonds, and cash or stable value investments.

To determine the appropriate allocation for stocks, a good rule of thumb is to subtract your age from 110. The answer, or result, is the percent of your portfolio that should be allocated to stocks. For example, a 40-year-old investor should have approximately 70% of their investment allocated to stocks (110 - 40 = 70). By following this rule of thumb and rebalancing their portfolio periodically, an investor reduces their risk as retirement nears.

By maintaining an allocation to stocks in retirement, an investor reduces the impact of inflation on their purchasing power of their savings.