Investing Strategies
Pre-Career (16-25) ? During this investment period in my life my goal is to have safety of principal while still receiving income. This is a very low risk portfolio strategy. Income will most likely be low because I will hopefully be enrolled in a post secondary education and graduate school. During this time I will be taking very minimal risks by investing in securities such as; T-bills, Canada, government and corporate bonds, stalwarts (blue chips), preferred shares, and possibly two or three small cap stocks in order to diversify my portfolio as well as incorporate some risk into it as well. Blue-chip stocks are very reliable and low risk because they are large companies with millions of assets and a great investment for this stage of my life.
Early Years (25-35) ? This time in my life will hopefully be one where I am able to spend a proportion of my income on investing in order to grow my portfolio. Hopefully at this point of my life I will have a high paying job after graduate school and will have income to spend. Although cash would be tight when attempting to raise and support a family, the portfolio must be balanced as well. Therefore, having money equally spread out between bonds, blue-chip stocks, and small caps would be the best scenario to grow my portfolio as well as keeping the risk at moderate degree. I would focus on all five types of stocks that I have previously researched; yet I will still have less money in speculative and potential turnaround because the risk is quite high.
Establishment Year (35-55) ? This is a very important investing stage in my life because I will have the money to be able to invest freely as well as be quite aggressive in the way I invest. The securities that I will most likely invest in are mo ...