A Conservative Investor will give up the possibility of higher returns if there is the slightest chance of losing money.
An Aggressive Investor is willing to run high risks for a chance at “hitting the jackpot.”
An OYR (optimistic yet realistic) Investor finds the middle ground between the other two groups. This investor wants to earn relatively high returns, as measured by historical standards, but is not willing to take big gambles. This investor achieves his/her goals by diversification and patience. An OYR investor realizes that over the short-term, the market moves both up and down.
How much can I spend in retirement and not run out of money?
Ideally, you want to live off of the interest of your savings. Realistically you will have to tap into the principal of your savings. Assuming a 30-year retirement you could tap 4% to 5% of your portfolio every year without fear of running out. If you take out 7% or more you run the risk of running out of cash. Splitting your money between conservative, dividend-paying stocks and high-quality bonds will usually get you through retirement without running out of cash.
How to protect yourself from identity theft.
Some important steps to avoiding identity theft:
- Shred or destroy all credit card receipts and offers, and other sensitive information.
- Close revolving credit card accounts that have been dormant for six months.
- Remember your mail and garbage are excellent sources of victimization.
- Don't carry your Social Security card with you.
- Never give out personal or account information over the phone.
- Be suspicious of e-mail offers that ask you for your credit card and PIN numbers.
- Keep your computer's anti-virus software updated.
- Avoid clicking on links in e-mails from unknown sources.
- Check your computer regularly for spyware – visit www.pcworld.com/downloads/ and www.shareware.pcmag.com for paid and free anti-spyware programs.
Source: Fraud Resource Group
