Thursday, February 22 , 2018, 2:22 am | Fair 36º



Jeff Grange: Investing for All Your Life Stages

An appropriate strategy will help ensure a financially secure future

It goes without saying that over the course of your lifetime, you’ll need financial resources for many important decisions and goals. Buying a car, putting a down payment on a new home and financing a child’s education may be among your priorities, but even while you’re earning and accumulating money for your more immediate goals, you should be saving for one of your most important long-term goals — your retirement.

Jeff Grange
Jeff Grange

Preparing for a financially secure future means having an appropriate investment strategy for each stage of your life.

An Early Start

When you are just starting out as a young professional, coming up with extra cash to invest may not be high on your list of priorities.

But by beginning to save in your 20s — even if it is just a small amount — you will have many years to benefit from compounding, that is, the continuing reinvestment of earnings from your initial investments.

At this age, there is plenty of time before you will need too much of your money, and you may be able to take more investment risk. Consider allocating a significant portion of your portfolio to investments with growth potential. And, if your employer offers a qualified retirement plan, by contributing as soon as you are eligible, your assets will have many years to potentially grow, tax deferred.

The Growth Years

By the time you are in your 30s and 40s, you may have reached many of your other goals, such as buying a house and paying off student loans. During these middle-aged years, you should aim to achieve maximum asset growth by saving as much as you can in both your retirement and your other investment accounts.

You still have a long time until you will need your retirement money, so consider keeping a large portion of your portfolio invested in securities with the potential for strong returns.

Protecting Your Retirement

By the time you reach your 50s and 60s, you may have considerable assets in your retirement accounts. So your objective during your later working years may be to preserve your gains and protect against losses. You might want to reduce your portfolio’s exposure to riskier investments by moving some of your assets into lower-risk investments.

Keep in mind that even modest inflation can wear down the future buying power of your money. Consider leaving a portion of your portfolio invested in assets with the potential for growth even after you retire.

— Jeff Grange is a financial advisor with Crowell, Weedon & Co. of Santa Barbara.

  • Ask
  • Vote
  • Investigate
  • Answer

Noozhawk Asks: What’s Your Question?

Welcome to Noozhawk Asks, a new feature in which you ask the questions, you help decide what Noozhawk investigates, and you work with us to find the answers.

Here’s how it works: You share your questions with us in the nearby box. In some cases, we may work with you to find the answers. In others, we may ask you to vote on your top choices to help us narrow the scope. And we’ll be regularly asking you for your feedback on a specific issue or topic.

We also expect to work together with the reader who asked the winning questions to find the answer together. Noozhawk’s objective is to come at questions from a place of curiosity and openness, and we believe a transparent collaboration is the key to achieve it.

The results of our investigation will be published here in this Noozhawk Asks section. Once or twice a month, we plan to do a review of what was asked and answered.

Thanks for asking!

Click here to get started >

Support Noozhawk Today

You are an important ally in our mission to deliver clear, objective, high-quality professional news reporting for Santa Barbara, Goleta and the rest of Santa Barbara County. Join the Hawks Club today to help keep Noozhawk soaring.

We offer four membership levels: $5 a month, $10 a month, $25 a month or $1 a week. Payments can be made through PayPal below, or click here for information on recurring credit-card payments.

Thank you for your vital support.

Reader Comments

Noozhawk is no longer accepting reader comments on our articles. Click here for the announcement. Readers are instead invited to submit letters to the editor by emailing them to [email protected]. Please provide your full name and community, as well as contact information for verification purposes only.

Daily Noozhawk

Subscribe to Noozhawk's A.M. Report, our free e-Bulletin sent out every day at 4:15 a.m. with Noozhawk's top stories, hand-picked by the editors.

Sign Up Now >

Meet Your Realtor Sponsored by Village Properties

John Sener
"I am known for tenacity, diligence, honesty, and sound decision making with the ultimate goal of closing every transaction to the satisfaction of all involved parties."

Full Profile >