Q: As a college student retirement is a long ways off. I do have savings from grandparents, aunts/uncles, and parents that I have kept in CD’s, Money Markets, etc. I heard Wes Moss talk about Income Portfolios and was wondering if you had any suggestions for starting this portfolio at a college age?
A: At this point in time, it probably doesn’t make sense to be looking as much towards an income portfolio as you should be looking for growth. When you have 15+ years before needing the money, you should be willing to take day-to-day risk and invest for the long-run in higher-yielding/return vehicles. We often suggest using the Jack Bogle rule of thumb, “Own Your Age in Bonds”. This means that you should think about owning more than 70-80% of your assets in growth-oriented equity investments.
Congratulations on being interested in this topic and getting on the effort of saving much earlier than most folks your age.