Defining the Traditional Model of Investing

  • By Jen Steever
  • 07 Jul, 2017

Models for Saving Money

from J. Elvin Dashiell and the Senior Information Corner
I have recently been approached by a potential client with a most interesting question. She said "I have had some family and friends use the term ' traditional model ' when discussing their investment portfolio. I always at as if I know what they mean, but i really don't. Can you define 'traditional model' for me?" I will do my best to answer for her benefit and all seniors.

Recommended Models

The best way to answer this question is to give a well known and often recommended model for saving money. We would bet good money that everyone, at least once, has been told to pay themselves first from every paycheck or sum of money they receive. This traditional model suggests that you should save 10 percent of everything you earn. There are countless examples of people who have stuck to this principle and wound up with a very comfortable life and solid retirement nest egg.
Another popular traditional model for an investment portfolio, and the one we use most often, is called "age of 100." It is used as a guideline on how much of your savings or nest egg should be "at risk" and how much at " no risk ." It works like this: whatever your age, that is the percentage of 100 that should be at no risk. The remainder can be invested in products with varying levels of risk. For example, a 25 year old should have 25 percent of their portfolio at no risk and 75 percent at risk.

Logic Behind the Models

This logic works because it has been proven that at risk investments, over a long period of time (such as 40 years), have demonstrated an average growth of about eight percent in spite of market crashes and down stock markets. In other words, when you are younger, you have plenty of time to absorb the losses and enjoy the high gains when they come. The opposite is true when you turn 65 and still have the majority of your retirement nest egg at risk. When the market crashes at this age, you don't have forty years left to build back up your money.
S2S Silver Services encourages its clients to use this traditional model. We convert your at risk investments to no risk investments as you get older to match your age (65 years old, 65 percent no risk). This is the way you protect your nest egg from massive losses and protect your retirement security. Everyone can benefit from following this traditional model.

"J. Elvin Dashiell was a tremendous blessing Lisa and me as we were dissatisfied with what was happening with our money in the stock market and bonds. We found J. Elvin and his methods to gain further stability that we had not seen in the past. I recommend that you hear what he might suggest in the form of investing. Thank you, J. Elvin, for the help and advice you continue to give us." Rev. Harry & Lis Millgaugh
By Jen Steever 16 Oct, 2017

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When you take into consideration that the average medical expenses of a 65-year-old couple can total around $218,000 over 20 years, it's clear why so many people choose to invest in long-term care insurance. For the same reasons, Medicare supplement plans could be a huge money saver in the post-retirement years to come.

If you are wondering whether long-term care insurance is the right financial decision for you, then keep reading to learn more.

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from J. Elvin Dashiell and the Senior Information Corner
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