The ideal mix of short- and long-term investments for your portfolio depends on several key issues.

• How soon will you use your money?
  Generally speaking, if you are younger and you don’t anticipate using the funds for ten or more years, you can afford to take on more risk with the goal of achieving a greater return. On the other hand, if you think you’ll need your money sooner rather than later, you may want to allocate more of your retirement plan assets to safer investments.
• What is your current financial situation?
  If you have other assets, such as real estate or commodities, you may choose to place a greater percentage of your money in stocks than fixed income investments, which carry less risk but produce lower returns. Also, the more money you have to allocate, the more you can afford to take on higher risk investments without sacrificing your overall financial security.
• How comfortable are you with natural market swings?
  Your individual tolerance for risk will strongly affect the makeup of your investment portfolio. The more comfortable you are with the natural rise and fall that occurs in the equities market, the more you will want to invest in stocks that can deliver higher returns over time. On the other hand, if you prefer more security and are satisfied earning lower returns, you may prefer to carry a greater percentage of fixed income investments.

These are three areas Northwest Investment Counselors will explore when we to begin building an individual investment portfolio that meets your unique needs.