Mutual funds for every objective
Mutual funds come in a wide variety of styles to meet the varying needs of investors.
Mutual funds come in a wide variety of styles to meet the varying needs of investors.
04/23/2024
INVESTING ESSENTIALS
Fixed-income mutual funds provide lower-risk options if your parents are looking for additional lifestyle income.
Equity funds are an option if your parents seek to grow their investments for sharing with future generations.
Moderately conservative asset allocations provide a lower-risk growth opportunity.
The longer your parents live, the more likely it is they’ll need help managing their money—in particular, their investments. It’s smart to discuss and to prepare your parents for that possibility, sooner rather than later. Here are some things to consider.
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Parental finances could get complicated. A financial professional may help make the planning, and the conversations, easier. Find a Thrivent professional. One way to simplify your parent’s investments may be to consider consolidating them into a portfolio of mutual funds.
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Will you have enough to make your retirement plans a reality?
After years of hard work and deferred gratification, you’re finally looking forward to a fulfilling retirement. And you have some big plans. Travel. Fine dining. A cozy, well-appointed vacation cabin. You now have the time to enjoy the good life that you may have had to (mostly) put off during your career.
Mutual funds embrace a range of investment vehicles, offering the flexibility and variety to tailor and adjust your parents’ holdings based on their needs, objectives and tolerance for risk.
Here are some of the ways a mutual fund investment portfolio could be designed, based on specific needs and goals:
Use this investing-style quiz to help you and your parents identify how their risk tolerance will shape the investments you choose.
While there are no guarantees on returns—and mutual funds do carry risk and may lose or gain money—they would allow you and your parents to spread the risk over numerous stocks, bonds and other investments. This diversification could allow returns on one investment to help balance or even outweigh a loss in another. While diversification can help reduce market risk, it does not eliminate it. Diversification does not assure a profit or protect against loss in a declining market. You also can change investment options and weights as your parents’ financial needs change. Consider working with a Thrivent financial professional to help with this strategy.
Whatever you decide, make it clear to your parents that you have their best interests in mind. And, be transparent in your dealings. Regularly review the performance of their assets and the options they have available and keep things as simple and clear as possible.
The concepts presented are intended for educational purposes only. This information should not be considered investment advice or a recommendation of any particular security, strategy, or product.
The information provided is not intended as a source for tax, legal or accounting advice. Please consult with a legal and/or tax professional for specific information regarding your individual situation.