In “Your 2011 Resolutions” by Sam Boykin, the Southpark Magazine author gives financial advice for young professionals, families with children, and retirees and baby boomers. The advice is a summary of information collected from numerous financial professionals, many of whom believe that investing in an indexed annuity is important for at least two of the three categories of people.
While young professionals are building their careers, they should be just as concerned about starting to save money for their future. Invest as much as possible into 401k’s, which can be transferred to a 401k annuity close to retirement to give lifetime income. While a diversified portfolio is always recommended, advisors say that your 20’s and 30’s are the time to invest in riskier products since you have the potential for large gains and a lot of time to make up for any unexpected losses. Inverse-exchange traded funds, international and emerging markets, large established companies and promising start-up companies can all be good investments for young professionals.
Advisors say that families with children are most concerned about their taxes and saving money for college. Fixed Index annuities are good investments for building up a strong financial foundation. This insured investment gives the potential for financial gain, but is insured against losing your money. It is also recommended to look into Real Estate Investment Trusts (REIT). You should put money into Roth IRA’s for your children in addition to the 529 savings plan for college. But above all, putting money aside for college educations should not supercede saving for your own retirement. There are always loans for college, but not for retirement expenses!
For retirees and baby boomers, they have to worry about what is happening on Wall Street, increasing taxes, and skyrocketing medical bills. Advisors suggest a Roth IRA conversion to combat the rising taxes that are likely to come. Fixed Index annuities are also recommended for this age group to help preserve the assets saved over their lifetime. They also need to make sure they have short term living expenses available so as not to withdraw from stocks or other investments hastily. Annuities are a good way to cover basic living expenses. No matter what age group you fall into, there are financial resolutions to look into for the upcoming year.
