investing

Factor your job into investment planning

Factor job into investment decisions
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Factor job into investment decisions

Investment planning involves a self-assessment of your goals, time horizon and risk tolerance. But financial planners say career choice should also be factored into the equation.

To maximize your income security, your investment plan needs to be in sync with your occupational outlook. If your employment position is shaky, "that dictates a more conservative asset allocation," says Paula Nangle, a CFP with The Marshall Financial Group, based in Doylestown, Pa.

Yet, Mark Heller, vice president of investments at UBS Financial Services in New Orleans, says, "People who are in risky professions are also big risk takers," while those in stable jobs may be more risk-averse investors.

Take the tenured university professor, for example. "When you think of the tweed coat and the patches on the jacket, this is typically not a high-risk person, even though … he could afford to take more risk (as an investor)," Heller says.

Here's how your employment situation should guide your saving and investing strategy.


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