60
TOBACCO OUTLET BUSINESS
MAY/JUNE 2013
In Focus: RetIRement
step tHRee: DeteRmIne YouR IDeal asset allocatIon
Once you have a plan in place, you’ll want to decide on an investment allocation
—
or mix of stocks, bonds, and cash
—
for the savings that will accumulate in it. Some
experts recommend a stock allocation of roughly 120 minus your age. For example,
if you’re 40, you would allocate approximately 80 percent of your total portfolio to
stocks. As you age, that number would then decrease so that by the time you hit 65,
equities will comprise 55 percent of your portfolio (that number may seem high, but
thanks to longer lifespans, investing too conservatively in retirement can mean your
savings will be outpaced by inflation and run short).
Fortunately, there are a number
of retirement programs that
provide tax advantages to both
sole proprietors and businesses
with employees.
