Austin American-Statesman Sunday - - 50 ATX -

What are your pri­or­i­ties when it comes to inves ting?Arey­ousim­ply look­ing to re­tire as soon as pos­si­ble, or do you have other fac­tors at play? Pon­der­ing such ques­tions is a cru­cial step to take. Re­gard­less of your pri­or­i­ties, re­mem­ber to di­ver­sify.

“It would be ter­ri­bly naïve for an in­vestor to put 100 per­cent of his or her cap­i­tal in stocks, un­der the be­lief that do­ing so will pro­tect the value of an in­vest­ment port- fo­lio from the risk of ris­ing in­ter­est rates,” McAbeer writes. “In fact, the op­po­site may ul­ti­mately be true and heavy stock al­lo­ca­tions might ac­tu­ally in­crease one’s risk of loss as a re­sult of ris­ing in­ter­est rates, par­tic­u­larly if one is heav­ily ex­posed to the high-div­i­dend-yield­ing sec­tors such as util­i­ties, pipe­lines, real es­tate, and telecom­mu­ni­ca­tions.”

For the in­di­vid­ual who plans on work­ing un­til the age of re­tire­ment, investing con­ser­va­tively for a longer pe­riod of time (long-term in­vest­ments) will re­sult in a hefty re­tire­ment fund, and can be done fairly eas­ily by ex­am­in­ing the rate of re­turn you de­sire and find­ing a mu­tual fund which will av­er­age t hats pe­cific rate of re­turn over 10 years’ worth of time.

Short-term in­vest­ments tend to be more risky, as they put faith in be­ing able to of­fer a quick turn­around on the rate of re­turn, but this can be a good op­tion, if you seek out pro­fes­sional ad­vice.

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