Growth investments can keep retirees in chips for duration

The Leckey File

Your Money

May 16, 2004|By ANDREW LECKEY | ANDREW LECKEY,Tribune Media Services

One of my favorite reader letters arrived several years ago.

"Dear Mr. Leckey, I am an 88-year-old investor who follows her portfolio very carefully," she wrote. "Could you suggest some good growth investments for me?"

While some might chuckle and say she should relax and be comfortable in her autumn years with dividend-paying stocks and a cup of hot tea, I commend her farsightedness.

Since there's no telling how long someone may live these days, it's smart to own some investments with the potential to outpace inflation. Growth investing involves buying stock in companies that tend to grow faster than others, though they're admittedly also riskier and more volatile in nature. It's a portion of a personal portfolio.

Too many Americans actively invest only up until their retirement, somehow forgetting that they still have years to go. When they spend more on trips, dining out, gifts to grandchildren and living costs than expected, they fall behind and can eventually run out of money.

May all readers have long lives and the money to make it enjoyable.

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