Investments: Make Them Work For You

To maximize your ROI (Return on Investment) and minimize risk, think carefully about the amount of stocks, bonds, and cash you have. You need to have a well-diversified portfolio typically has assets in stocks and bonds, as well as international markets. You may want to base you investments on a balanced fund. These types of funds seek to build a level of steadiness into their returns year in and year out by investing in a blend of stocks and bonds, aiming to provide stability as well as some prospect for growth.

To fully optimize you investments you must understand your situation. Before making investment decisions at any age, you need to consider your risk tolerance, present savings, future earning power, and other personal matters. Every retirement is different, and so should be every retirement plan. A tax and financial advisor can help if you are lost in the mix of available investment options.

Remember you need to take the long view. According to the most recent available data from the National Center for Health Statistics, a 50-year-old can expect to live, on average, another 30.5 years. If you are 50, and trying to rebuild from an investment loss, remember that you a couple of decades to recoup your losses.