Financial Resource

Article by William Smith

Countless articles on the web treat stock picks as if they were a raw, interchangeable commodity. The fact is, the best stocks for you depend on your age and station in life.

This article examines the best stock picks for every age group, from newborn through retirement and beyond.

Before acting on any of these stocks, be sure to thoroughly research the companies and then speak with an investment advisor. These selections are purely for entertainment purposes, and are not to be taken as financial recommendations.

Stock Picks For Your Kids

Newborn/infant: Buy $ 500 worth of stock to commemorate the birth of your child or grandchild and establish a custodial account with yourself as trustee.

Your investment will have plenty of time to grow, so look for companies with solid growth potential over the next 20-30 years. Stocks: Quantum Fuel Cells (QTWW), Bidu.com (BIDU).

Age 5-12: Buy 10 shares of a company your child can relate to and gift them to him or her. Stock picks: Walt Disney Corporation (DIS), Hasbro (HAS).

Age 13-17: Now is a great time to get your kids into investing. Their interests have changed, but the logic remains the same – buy shares of a company that makes a product or provides a service that they use. Stocks: Nike (NKE), Abercrombie and Fitch (ANF).

Age 18-22: People of this age can begin investing on their own. Again, they should be looking for growth. They can afford to speculate, but at the same time, its important that they don’t get discouraged by having their investments go bad.

As a result, people age 18-22, typically college students, should play it a little more conservatively than the next age group. They can afford to be a little more aggressive once they get the hang of the market. Stock picks: Apple (AAPL), Yahoo! (YHOO).

Stock Picks For Your Working Years

Age 23-29: Young professionals should develop the habit of saving early on by fully funding their 401k’s and establishing self-directed Roth IRA’s right away. If people of this age recognize that they are in it for the long haul, they can afford to be aggressive with their investments. Stocks: Google (GOOG), Hansen Natural (HANS).

Age 30-39: People of this age who began investing in their twenties may want to tone down the aggressiveness of their portfolio just a little bit, perhaps by adding some bonds. But those who are just getting started need to be even more aggressive. Stocks: EZCorp (EZPW), Paychex (PAYX).

Age 40-49: By now, you should have a decent nest egg built up. It is probably wise to add some fixed income investments to your portfolio and to reallocate your funds into more stable growth companies. Stocks: Advanced Micro Devices (AMD), Archer Daniels Midland (ADM).

Stock Picks As You Approach Retirement

Age 50-59: Now you want to be about half in bonds, with your stocks being blue chips from the S&P 500, if not the Dow 30. Stocks: Proctor and Gamble (PG), Altria (MO).

Age 60-65: Wind down your working years by moving at least 90 percent into bonds. As a result, you can afford to get a little risky with the equity portion of your portfolio in hopes of realizing some outsized gains just before retirement. Stock picks: Ladish Company (LDSH), Cognizant Technology Solutions (CTSH).

Age 65+: Its not pleasant to think about, but if you’re still looking for stocks at this age, chances are you did not properly save during your working years.

As a result, instead of being more conservative, you probably need to be even more aggressive. If you’re trying for a big score, perhaps options or futures are your best best.

If choosing stocks, it is probably best to speculate on a takeover target. Stock picks: Mamma.com (MAMA), Salon.com (SALN.OB).

Stock Picks For the After-Life

If you save diligently and invest wisely, you may not be able to spend all of the money that your portfolio earns in your lifetime. In this case, why not give back? Invest your excess wealth in a charitable trust set up to give to the causes you believe in most. Stocks: Berkshire Hathaway (BRK-B), or if you’re really successful, (BRK-A).

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