Help Your Retirement - First Get to Realize Your Retirement Planning Style
I know I have been talking about my ski trip to Aspen for a period of time now. I have just a few more stories I think you can profit from... So be patient.
As I mentioned before, the once a year ski trip is an assembly of incredibly smart guys. I go every year with one goal in mind. To listen for great investment ideas.
One evening I had the privilege of dining next to an asset boss from Canada. This energetic guy shared his views on the markets and the way to profit. He's's a strong follower in asset grant, but he's got a terribly unique way of looking at instruments and debt instruments.
Some of his comments really got me thinking. Such as average retirement savings [http://averageretirementsavings.info]?
My friend has been an asset executive for some time now... And he is's building his practice. See, he is's extraordinarily selective over whose money he'll take. He won't work with just anyone.
If I had to guess I would say he has about $150 million under management. Bear in mind, this is a guess on my part. Asking how much the fellow manages is like asking what quantity of money he makes - it's rude. Truly, the amount he has under management doesn't matter... What's necessary to know is that he is's experienced.
As we talked over dinner, we disagreed about market direction, world investing, and even asset grant strategies. We even shared a few of our favorite stock picks. But the one comment that truly stuck with me was his comment about clients.
In his observation, high net worth clients have a tendency to fall into one of two classes. They're either'Savers' or'Investors'.
What did he mean?
He gave me a perfect example. One customer is trusting him with just over $5 million. This customer is a trader for a major investment firm. Now you'd think a bloke like this would be prepared to take on some risk. You'd expect him to be a large'Investor'.
But you'd be incorrect.
This customer was a classic'Saver'. He did not want to take on risk. He was upset at the thought of losing just 2% of his capital because of the market chaos. ( remember some equity backers are down 30%, 40%, and even 50% or more )
despite the perception he'd be a risk taker, his focus was on capital preservation. That is the reason why he used to be a'Saver' and investing in bonds.
They were more willing to take on risk... And they had a gigantic portion of their portfolio in equities. Here's the important point. You can't make a'Saver' an'Investor'. And you can't make an'Investor' a'Saver'.
Many of us are not all one or the other. Many of us fall somewhere in the middle. Knowing where we stand help identify the types of investments best for us. 'Investor' comment was an observation on risk profiles.
At the sacrifice of growing capital. So this brings me to another observation my friend had...
it's kind of complicated ( and I'm running out of room here ) but this was his comment in a nut shell. High yield bond investments are throwing off enormous amounts of yield. This makes them really tasty investments.
Here's the twist. The chance profile of a high yield bond is very similar to an equity. It permits him to give these investments a unique look.
I found this thinking fresh and original. That is the reason why I needed to share it with you. Take a few moments to look at your portfolio. Make sure it's risk profile matches yours. No sense losing sleep over something simply modified. Learn about the average retirement savings [http://averageretirementsavings.info] here.
As I mentioned before, the once a year ski trip is an assembly of incredibly smart guys. I go every year with one goal in mind. To listen for great investment ideas.
One evening I had the privilege of dining next to an asset boss from Canada. This energetic guy shared his views on the markets and the way to profit. He's's a strong follower in asset grant, but he's got a terribly unique way of looking at instruments and debt instruments.
Some of his comments really got me thinking. Such as average retirement savings [http://averageretirementsavings.info]?
My friend has been an asset executive for some time now... And he is's building his practice. See, he is's extraordinarily selective over whose money he'll take. He won't work with just anyone.
If I had to guess I would say he has about $150 million under management. Bear in mind, this is a guess on my part. Asking how much the fellow manages is like asking what quantity of money he makes - it's rude. Truly, the amount he has under management doesn't matter... What's necessary to know is that he is's experienced.
As we talked over dinner, we disagreed about market direction, world investing, and even asset grant strategies. We even shared a few of our favorite stock picks. But the one comment that truly stuck with me was his comment about clients.
In his observation, high net worth clients have a tendency to fall into one of two classes. They're either'Savers' or'Investors'.
What did he mean?
He gave me a perfect example. One customer is trusting him with just over $5 million. This customer is a trader for a major investment firm. Now you'd think a bloke like this would be prepared to take on some risk. You'd expect him to be a large'Investor'.
But you'd be incorrect.
This customer was a classic'Saver'. He did not want to take on risk. He was upset at the thought of losing just 2% of his capital because of the market chaos. ( remember some equity backers are down 30%, 40%, and even 50% or more )
despite the perception he'd be a risk taker, his focus was on capital preservation. That is the reason why he used to be a'Saver' and investing in bonds.
They were more willing to take on risk... And they had a gigantic portion of their portfolio in equities. Here's the important point. You can't make a'Saver' an'Investor'. And you can't make an'Investor' a'Saver'.
Many of us are not all one or the other. Many of us fall somewhere in the middle. Knowing where we stand help identify the types of investments best for us. 'Investor' comment was an observation on risk profiles.
At the sacrifice of growing capital. So this brings me to another observation my friend had...
it's kind of complicated ( and I'm running out of room here ) but this was his comment in a nut shell. High yield bond investments are throwing off enormous amounts of yield. This makes them really tasty investments.
Here's the twist. The chance profile of a high yield bond is very similar to an equity. It permits him to give these investments a unique look.
I found this thinking fresh and original. That is the reason why I needed to share it with you. Take a few moments to look at your portfolio. Make sure it's risk profile matches yours. No sense losing sleep over something simply modified. Learn about the average retirement savings [http://averageretirementsavings.info] here.
