Building a sustainable financial portfolio

CAPE GIRARDEAU, Mo. (KBSI) – Day dreaming about the future can be something most people find themselves doing.

Thinking about their later years and how they’re going to spend them, as well as how they will navigate the ebbs and flows of the economy, registers with every working American.

Building a financial portfolio for that future is not an easy task when entering the working world. Building a financial portfolio for the future can be achieved at any time or age.

“A portfolio is a collection of stocks or bonds, or you could even have crypto currency. It’s basically a collection of all your investments. And you can have multiple different types of financial portfolios,” said Tim Marlo, the Clinical Associate Professor of Finance Southern Illinois University Carbondale. “You can have a retirement portfolio, you can have a fun money portfolio, you just have various types of portfolios, the one I mainly talk about though is a retirement portfolio.”

Some companies offer their employees the benefit of a 401K that can be balanced with how much they withdraw for retirement.

Professor Marlo says the sweet spot for anyone should be 15% of pay, either all together or split with a 401K.

“When I say 15 percent, I don’t mean your take home pay, I mean the very beginning what you started off with before your taxes got taken out and your Social Security,” Marlo said. “So, you need 15 percent to be taken out, now while that’s a lot of money, sometimes some employers have cool programs called 401k programs which is what they’ll match what you’re putting in there.”

Taking advantage of those programs are vital for financial security and an enjoyable retirement.

For example, every dollar that you put in, your employer is putting in that same amount. So, putting in 7.5% in order to get that full 15% invested for yourself.

Professor Marlo finishes by saying, “But again, I would say 15% is, in fact I emphasize that all the time in my classroom, that’s my big take away, 15%. One, five.”

So, if you plan ahead now, the future will in fact be one of a prosperous nature.

Categories: News