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Yourself & InvestingBy Roger Sorensen
Everyone has heard the mantra in recent years that you must have a portfolio of investments in order to live out quality retirement years. Before you start throwing money at every stock and bond you see, or especially if you already have started doing that, you need to have a little Q&A time with yourself.
Spending some time with a fee-only financial planner is always a good idea. As your life changes the things you need to know and understand about yourself will change as well. Children, grandchildren, divorce, death, business opportunities will affect your investments. By understanding the following things about yourself first, you will be started on the way to building a great investment portfolio:
Income – how much investing can you afford each pay period
Financial needs – what is your liquidity needs, is the investment for college funds, what tax bracket are you in now, etc.
Existing insurance coverage – would a term policy be a smart choice, or would a variable annuity be better, do you even have disability insurance
Age – should you involve another family member in these investment decisions
Goals – what ambitions do you have for your investment portfolio, and your life
Credit standing – how is your credit score and history, are there problems you need to clean up at this time
By knowing these basics will help you build the correct investing strategy for you and make sure that you consider all the important points when making investment decisions.
Copyright Roger Sorensen
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