Age-based Saving with Gold and Real Estate

Today’s installment of age-based investment tips for 2009 focuses on gold as well as real estate.

25 to 35: The key for investing for this age group is thinking long term. Plan to invest a specific amount of money regularly over a long period of time.

Avoid selling stocks unless you absolutely need the liquidity, getting out at the bottom will mean missing the upswing. The current stock market offers and opportunity to buy at low prices, according to Thomas OBryon, CEO of Wilshire Finance Partners, a Los Angeles-based real estate lending company.

35 to 55: Success in investing requires a long-term strategy and diversified portfolio with investments that include but not limited to real estate, commodities, stocks and bonds.

Avoid selling stocks and consider buying shares in financially solid companies that have earnings and a small debt to equity ratio. If you’re in the bond market go with shorter-term notes, you will be less affected by volatility and they are more liquid.

Consider a 5% to 15% investment in precious metals as a hedge. “In 5,000 years, gold has never been worth zero,” says Kevin DeMeritt, president of Lear Capital, a Los Angeles-based precious metals investment company.

55 to 75 and older: People are living longer, healthier lives. This, combined with inflation, means there is a real concern for longevity risk management. These folks need investments that provide predictable monthly cash flow, security of principal, generate attractive rates of return, offer diversification, and an inflationary advantage that is not affected by market volatility, says Wilshire Finance’s OBryon.

“Mortgage pools, generally managed by private lending institutions, represent one of the greatest sources of investment revenue opportunities today,” OBryon says. “Investing in a mortgage pool fund can provide lifetime retirement income making them ideal for retirees, those nearing retirement and others on a fixed income.”

Mortgage pool loans are based on the value of real property. They are generally short-term, bridge loans (one year to five years). As asset-based loans, the primary source of repayment is from the sale or refinancing of the collateral property.

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