Diversification, no matter how small the amount, is important whether it involves stocks, bank accounts or real estate. Stuck in the middle Middle age can be a perplexing time for personal finances. Education of children is often a major goal and income is important. Yet at some point during middle age, a person will at last be free of responsibilities for children's education, while retirement seems a long way off. Blue-chip stocks with dividend income and some potential growth in price are good choices to build up a nest egg.
Municipal bonds can be a good choice if there is substantial family income to be sheltered.
Retirement investing is crucial. Investing is a challenge for senior citizens. Whenever interest rates decline, they suffer a big drop in income. When seniors don't diversify, they run the risk of interest rates or market fluctuations having a devastating effect on their investments. However, don't overlook growth altogether, since having some money in growth stocks or a growth stock fund is an excellent way to help battle the ravages of inflation.