4. Investing for short-term goals
If you’re saving for a home, cabin, boat or other short-term goal, you may opt for a less aggressive investment strategy that is many years away.
Although stocks or a stock mutual fund might be part of your short-term investment strategy, you may wish to minimize the risk of loss by balancing your portfolio with some less volatile investments, such as bonds or bond funds. You might also consider an asset allocation fund that invests in a diverse portfolio of stocks, bonds, and other investments. Although diversification does not eliminate risk, it may help reduce losses during market fluctuations
(Thrivent Mutual Funds offers four asset allocation funds that are automatically diversified and range from moderately conservative to aggressive.)
While the strategies discussed here may be appropriate for many investors, consider your overall portfolio, financial situation, investing experience, time horizon, and investment objectives.
Gen-Xers have enjoyed a steady increase in their average income and investment savings. But will it be enough to avoid the financial issues that many Baby Boomers are now facing in their retirement? By taking steps now, Gen-Xers can help meet their retirement objectives.
Read Money and Gen-Xers: Part 1: Forgotten Gen-xers hitting their stride.