If you live long enough, you’re going to have a family member or close friend die. Compounding an already sad and stressful event, a person’s passing means that someone needs to take over their affairs—which is not a small job. Here are the things you need to do to be prepared.
In a nutshell, risk tolerance is a term used to describe how an investor would feel under certain circumstances if their investment portfolio lost money.
More and more investors want their investments to reflect their values. Yet, there is a persisting belief that “investing for good” involves a trade-off in performance. Years ago that was largely true but today it is not a given.
So, where do you pull money from if needed? Once you turn 59 ½, money can come out of retirement accounts with no penalty however, ordinary income taxes would be due. Therefore, before age 72, one should calculate how these withdrawals could affect their taxable income as the amount withdrawn would be added to ordinary income.
· Consider walking or riding a bike to get where you’re going instead of driving your vehicle. Its good for the environment and its good for your physical health, too.
The reason one may feel it is safer to invest when the share price is rising is merely psychological. It is human nature to want to see an investment (whether a stock or real estate) go up in price. We rationalize that if the price is rising it must be a good thing and provides more safely.