Investments Savings Depend on Stage of Life
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October 15, 2001
The Palm Beach Post
By Jeff Ostrowski
Everyone should spend prudently, save consistently and follow the other rules
of financial planning.
Yet, how you apply those rules depends on your goals, age and family situation.
A 75-year-old, for instance, shouldn't invest in risky growth stocks, but in
low-risk bonds. A 25-year-old, however, would be foolish to pass up growth
stocks for bonds.
Likewise, a young, single person with no children can do without life insurance,
while a married breadwinner with a brood would be irresponsible not to have
it. Here's how to apply the rules of financial planning to your situation,
according to The Palm Beach Post's interviews with financial planners and the
books Everyone's Money Book by Jordan Goodman and Staying Wealthy: Strategies
for Protecting Your Assets by Brian H. Breuel.
Insurance: Consider long-term care insurance, which pays for home health care
and nursing homes - costs that can eat into your assets. Keep in mind that
premiums are pricey, but if you wait until you're sick, you probably won't
be able to afford the coverage. Life insurance replaces lost income, so a retiree
who isn't working doesn't need it. But don't cancel your life insurance before
checking with your estate planner, says Richard Newman of Newman & Cohen
Financial Management in Boca Raton. Life insurance offers certain tax advantages
that can make it a valuable estate planning tool.
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