Investors age 45 to 55 should continue to focus on diversification, pros say, and keep a healthy dose of equities in their accounts
People who have hit their middle years may be used to taking flak from their friends and children for not behaving or dressing appropriately for their age. (Picture a teenager rolling her eyes when she sees a track from one of her favorite bands on Dad’s iPod.) But is there such a thing as an age-appropriate investment portfolio?
There’s no one-size-fits-all approach to financial planning. Two investors who are the same age may have different time horizons in terms of retirement or different financial requirements for things like their children’s education. Folks in the 45-to-55 bracket, like other investors across the age spectrum, are best served by focusing first on tried-and-true portfolio principles such as diversification and balance.
