Share bright future

Jun 23 2009 by Sue Scott, Evening Gazette

FINANCIAL planners claim young people should invest in stocks and shares to feather their retirement nest egg - but not if they’re chasing a quick buck.

Richard James of Darlington’s Coniscliffe Financial Planning Ltd uses a simple formula - age to retirement multiplied by two - to calculate the proportion of an investor’s portfolio that should be allocated to stocks.

For example, a 35-year-old male with 30 years to retirement age (currently 65) should hold around 60% of his portfolio in stocks. But this should be reduced to 10% for 55-year-old woman with five years to retirement (currently 60).

He says: “Stock market investments are for the long-term. Pensions and property have had a bumpy ride but historically stocks offer a decent return over a number of years.”