{"id":7392,"date":"2014-02-10T08:14:20","date_gmt":"2014-02-10T16:14:20","guid":{"rendered":"http:\/\/www.marketriders.com\/investing\/?p=7392"},"modified":"2016-12-21T07:28:11","modified_gmt":"2016-12-21T15:28:11","slug":"best-investments-mid-career-workers","status":"publish","type":"post","link":"https:\/\/www.marketriders.com\/investing\/best-investments-mid-career-workers\/","title":{"rendered":"Best Investments For Mid-Career Workers"},"content":{"rendered":"

The investing advice you hear tends to come in two flavors:\u00a0total beginner<\/a>\u00a0or\u00a0nearly retired<\/a>. If you are young, say in your 20s, you should be heavy stocks and light on\u00a0bonds, some say.<\/p>\n

If you are in your 60s, well, reverse that. Be heavier on\u00a0bonds\u00a0and light on stocks, which can be volatile.<\/p>\n

The numbers vary. Often you hear of a\u00a060\/40 stocks bonds mix<\/a>, which implies that the younger saver should have between 60% and 80% stocks and the difference in\u00a0bonds, while the older person might be more comfortable with the equation flipped, at 60%\u00a0bonds\u00a0early on and maybe 80% at some point late in retirement.<\/p>\n

There’s plenty of reasonably good experience behind these rule-of-thumb measures. \u00a0But where does that leave the mid-career worker? Fifty-fifty? What about\u00a0bond risk<\/a>, or times when the stock market simply gives way and falls like a rock?<\/p>\n

\"best<\/a><\/p>\n

The truth is, rules of thumb are good only as conversation starters. When\u00a0it comes to actual investments, the research shows that the better course for any age is not two asset classes but six.<\/p>\n

You are still mostly in stocks and\u00a0bonds, but there are a couple of categories and even subcategories added. Here’s a breakdown:<\/p>\n

Bonds<\/strong><\/p>\n

Here you might own a total bond market fund that covers the breadth of the U.S. Treasury market, but also\u00a0emerging market bonds<\/a>\u00a0and even high-yield corporate bonds. The idea is to have a base of solid income while adding extra yield to compensate for lower interest rates today.<\/p>\n

Commodities<\/strong><\/p>\n

Many long-term investors fear the volatility of commodity funds. Yet a small slice of that risk offers an effective counterweight for those times when the market dips south for emotional reasons. Often, those same, panicked\u00a0investors pump up commodities<\/a>\u00a0as a defensive move.<\/p>\n

Emerging market stocks<\/strong><\/p>\n

Yes, they’re in the doghouse now. But that’s often the best moment to buy. Over time, experience shows, most of the real growth in the world happens in\u00a0the emerging economies<\/a>.<\/p>\n

Foreign developed stocks<\/strong><\/p>\n

As a counterweight to U.S. stocks, developed-country firms bring you solidity with\u00a0better growth characteristics<\/a>. Think Toyota,\u00a0Danone\u00a0and HSBC. Global brands, just not necessarily American brands.<\/p>\n

Real estate<\/strong><\/p>\n

Often considered solely an income play, the total return on\u00a0real estate investment trusts (REITs)<\/a>\u00a0really trounces the pack. Their volatility can be a problem, but keeping your holding reasonably low will help.<\/p>\n

U.S. stocks<\/strong><\/p>\n

Yes, stocks, and probably more when you are younger and less when you are older. But not just the Dow or even the S&P 500.\u00a0You should also own small-cap stocks<\/a>\u00a0for their growth record.<\/p>\n

A well-considered portfolio will own all of these asset classes, largely through exchange-traded funds (ETFs). Keeping gains via rebalancing then allows you to harness the\u00a0wealth-building power of compounding<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

The investing advice you hear tends to come in two flavors:\u00a0total beginner\u00a0or\u00a0nearly retired. If you are young, say in your 20s, you should be heavy stocks and light on\u00a0bonds, some … Read more →<\/span><\/a><\/p>\n","protected":false},"author":8,"featured_media":7393,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_wp_rev_ctl_limit":""},"categories":[4],"tags":[62,42,43,37],"yoast_head":"\nBest Investments For Mid-Career Workers | MarketRiders<\/title>\n<meta name=\"description\" content=\"Research shows that the best investments for any age are not two asset classes but six in well-designed portfolio.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.marketriders.com\/investing\/best-investments-mid-career-workers\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Best Investments For Mid-Career Workers | MarketRiders\" \/>\n<meta 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