Thursday, January 3, 2008

What About People Who Are Retired Or Have A Family?

Age is a strong consideration in investment decision. Notice how conservatism comes with age. With age, comes the awareness that a serious investment error could jeopardise the security that has taken years to accumulate. The closer the retirement, the fewer the years to rebuild.

Investment risk is quite different from gambling. Weighing risk based on facts is investing. Taking chances based on odds is gambling. The point is, age is an important factor in deciding risk.

Another strong consideration is responsibilities. A young individual beginning a career with the additional responsibility of one or more children must weigh these responsibilities. The most protection for the fewest ringgit should supercede any forced savings that would reduce family protection.

Financial needs change. How they are met should depend on our responsibility.