We’ll look at revisiting your retirement goals to get a crystal-clear picture of where you are at and how to match your investing style with your needs.
1. Time horizon is how long you’ve got left to invest. 2. Liquidity needs is how much money you need from your investments within the next year. 3. Taxes are relatively high for pre-retirement investors, from both retirement income and interest on investments.
Worrying about how much you’ve saved so far is less important than figuring out how far you can stretch it and rechecking your retirement goals.
Conservative Cody is a cautious investor and gets stressed out by swings in his portfolio. He is fine with slightly lower returns if it means a more stress-free investment approach.
Average Amanda is our base-case investor, neither overly cautious or risk-seeking. She budgets her money and invests regularly. She doesn’t want to have to worry about her retirement savings but is willing to let the market work.