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division particularly across expected result rates

Governments ____ 1 ____ Europe are already starting to worry. Why? Because low birth ____ 2 ____ combined with longer life expectancy mean that the Continent will soon have ____ 3 ____ people working and fewer people paying taxes. As a ____ 4 ____ a whole range of measures must be taken to deal ____ 5 ____ the problems that this change in demographics will bring.

At the recent Annual World Economic Forum in Davos, Switzerland, a session called “Reforming Pension Systems” took place. The speaker, director of the population ____ 6 ____ of the United Nations, highlighted that this is a global problem, not ____ 7 ____ a European one. However, the facts cannot be ignored: the situation in Europe is ____ 8 ____ serious. Look at the findings of a recent European Commission study: Italy’s population is ____ 9 ____ to drop from 58 million by 2050. Spain’s will fall from 40 million to 35 million, and Germany’s from 82 million to 76 million. Sweeden is one of the few countries where the population will probably ____ 10 ____.

And as the populations get smaller, they are also ____ 11 ____ older. From 2007 onwards an enormous part of Europe’s population will start to retire. Solutions will have to be found to deal with the problems that this will create. Certainly governments must encourage private ____ 12 ____ plans, and old-fashioned tax and social security models must be looked at in a completely new way.

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return loss stability retirement manager means

much like safest developed particularly

In this report we are going to look at the three main types of investments: cash (in bank accounts), bonds (long term loans that give a fixed rate of return) and stocks (equities). The ____ 1 ____ is cash, and the fact that this has less risk than the others ____ 2 ____ that it also has a lower ____ 3 ____. If you want a better return you should consider bonds. These are fixed interest investments, and are a more attractive option than cash, ____ 4 ____ when interest rates are falling. The riskiest form of investment is stocks. They offer the chance of ____ 5 ____ greater profits over the long term, but you might make a ____ 6 ____ if the company does badly. The worst case scenario is that the company goes bankrupt and you lose everything. You can reduce the risk by investing in a fund rather than individual stocks. Funds that invest in ____ 7 ____ economies are a more sensible choice for most people, as the markets have more liquidity and it is easier for the fund ____ 8 ____ to buy and sell. But there are also emerging market funds that invest in countries ____ 9 ____ China, India, or Turkey. These markets are only for the most aggressive investors of all as they have much higher volatility.

So what is the best solution? Most financial advisors recommend a balance. In the middle of your career you can afford to have a larger part of your investments as stocks, perhaps, 60-80%, with some bonds for ____ 10 ____ and cash for emergencies. As you get nearer ____ 11 ____ you should consider switching most of your money to bonds, and increasing your available cash.