Investing for a FitFuture
Welcome to "Your Financial Fitness," a column designed to provide a platform for questions on finance and retirement. Each column addresses topical questions, submitted by readers and generalized for all. Questions are selected based on their suitability for the column. See below for submission information.
Tom (Vallejo, Ca) asks: I’m nearing retirement and I am confused as to how to progress with managing my portfolio. I don’t want to take a lot of risk, but then I don’t want to leave all my funds in a bank account earning low interest. Any ideas?
Tom, I would first consider writing a financial plan. Getting all the details about your finances down on paper should precede making comprehensive investment decisions. Some individuals can accomplish this on their own using spreadsheets or financial planning software. Most people, at one point or another, will seek professional advice. Go to www.cfp.net for a list of planners in your area.
With that said, there is one thing I advise my clients to do as much as possible, and that is to pay their retirement expenses with income as much as possible. You do not want to regularly be in a position to have to sell stocks or bonds to pay the bills. I suggest you look into investments that pay you a regular stream of income. Depending on your circumstances, you may not want to invest exclusively in this manner, but all things considered, this would be a good place to start.
Jim Riley, is the director of planning for Napa Wealth Management. He has an extensive background in wealth management with particular expertise in retirement planning, tax preparation, insurance and accounting matters. Send submissions to money@solanofitmag.com.
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