How to Create an Investment Portfolio in Your Golden Years

Even though you are in the prime of life doesn't mean that you are too late to start investing. With some simple financial planning, you can invest for your future, or that of your children's.

Things You'll Need

• Financial Calculator
• Brokerage Accounts
• Estate Planning Software
• Personal Financial Software

Instructions

1. Set goals. Evaluate spending and income, and decide what you'll need to do to boost your income to meet your goals.

2. Avoid tapping your 401(k) plan and other tax-deductible retirement accounts.

3. Consider starting your own small business or getting a part-time job to meet expenses. It might be fun.

4. Throttle back on risk. Although you might be tempted to invest heavily in high-risk stocks, resist. Put only a portion of your kitty in such stocks, no more than 10 percent to 20 percent, depending on your appetite for risk.

5. Put a greater percentage of your portfolio in tax-exempt bonds and other lower-risk holdings. Some advisers recommend you keep at least 40 percent in bonds or bond funds after retirement.

6. Consider selling your home and moving to a retirement community. Proceeds from the home sale can be invested to help fund your retirement.

7. Consider a reverse mortgage. If you have decided to keep the house, shop around for a reverse mortgage.

8. Take advantage of investing brochures, personal-finance magazines, stock analyses and other resources that you can get free online and at your local library. Many libraries carry Morningstar assessments of mutual funds. The American Association of Retired Persons (AARP) Web site offers free tips on protecting yourself from scams. Senior centers occasionally host free or low-cost investment seminars.

9. Start estate planning - deciding how you will distribute your assets after your death.

Tips & Warnings

• Experts say that to maintain your current lifestyle in retirement, you will need 70 percent of your preretirement income. If you earn $50,000 per year today, you'll need $35,000 per year in retirement.