As the president and CIO of Mowery Capital Management, LLC, Fritz Mowery provides his clients with a range of financial products and services. In addition to assisting these clients with general asset management, Fritz Mowery helps clients plan for retirement.
When planning for retirement, consumers have to consider many factors, but time is a major one in crafting a retirement portfolio that will generate enough income. Retirement planning comes down to calculating how much money a person will need to generate in a certain amount of time. Factors usually include marital status, number of children, outstanding debts, and present income.
Age is one of the main factors that influences the amount of money a person can save. The younger a person is, the longer the time horizon, and the greater risk they can take. Time is a hedge against risk since market volatility evens out losses over time. For this reason, a young person might allocate more of the savings to stocks, which tend to be volatile.
An older person would need to invest with less risk. Investing in bonds might not generate the same growth as stocks, but they provide steady income during retirement.
When planning for retirement, consumers have to consider many factors, but time is a major one in crafting a retirement portfolio that will generate enough income. Retirement planning comes down to calculating how much money a person will need to generate in a certain amount of time. Factors usually include marital status, number of children, outstanding debts, and present income.
Age is one of the main factors that influences the amount of money a person can save. The younger a person is, the longer the time horizon, and the greater risk they can take. Time is a hedge against risk since market volatility evens out losses over time. For this reason, a young person might allocate more of the savings to stocks, which tend to be volatile.
An older person would need to invest with less risk. Investing in bonds might not generate the same growth as stocks, but they provide steady income during retirement.
