Title:
Retirement Savings Rule 2: Plan for Your Future
Goals and Needs
Description: This is
a VOA Special English Economics Report.
See text below
Text:
Last week, we discussed limiting investment risk in
retirement planning. So what are financial planners
advising people to invest in? Stocks and bonds are
the best known investments and are important to any
savings plan. Instruments like savings accounts and
certificates of deposit pay a small rate of
interest. They carry little risk. Annuities are
another savings instrument with low risk. Financial
planner Pete D'Arruda says "Worldwide, people can
put their money in annuities, which are basically
savings accounts offered by insurance companies."
But he says it is important to make a decision about
an annuity with a good financial planner. He warns
that annuity agreements can be complex, and many bad
ones are out there. Pete D'Arruda says good planning
means placing money into financial securities and
accounts that have different risk levels, using
asset allocation. "So true asset allocation is
having some in stocks, some in bonds, some in mutual
funds, but then some in other places with guaranteed
income and then safety and liquidity kind of
accounts for emergencies." This method of savings
follows the old saying you should not "put all your
eggs in one basket." But that is not for everyone.
Sande Taylor is with the investment company Charles
Schwab in south Florida. She advises investors every
day. She says many investors have a personal style.
There are conservative investors. "A conservative
investor by definition typically has eighty percent
of their portfolio within fixed income markets and
cash." Even in retirement, Sande Taylor says, some
people have their entire financial portfolio, or set
of investments, in stocks. They are the aggressive
investors. In saving for retirement, there can be a
difference between what people believe and what they
actually do. In a recent Charles Schwab study, most
Americans said they believe it would be easier to
save for retirement if they were single. But the
study found that eighty-five percent of married
people had started saving, while only two thirds of
singles had. Sande Taylor says younger people may
seek short term goals. "The younger individuals look
at it and think, 'Well retirement is so far away,
I'd rather focus on my shorter term goals.'" But she
says there are big gains to be made by starting
early and planning for the future. For VOA Special
English, I'm Carolyn Presutti.
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Hi. I
personally reviewed this video and found it appropriate for
the news section of English Global Group. This
is a Voice of America video which covers an interesting
topic in Special English. I would appreciate some feedback from both
students and teachers about this video. You can comment in
the window below using any of a number of different services
including Facebook, Yahoo, AOL, and Hotmail.
