Owning Stocks in Retirement: Why We Do Buckets- Season 6: Episode 9
Have you ever heard the idea that stocks are too volatile for retired people to own? There’s even an old rule-of-thumb formula that tells you to decrease your stock holdings by 1 percent every year and replace them with bonds. These generic “guidelines,” though, are hardly prudent advice for most people, because everyone’s situation requires a different approach.
It may actually be more beneficial for some people to hold steady — or even increase — their exposure to stocks as they get older. What often matters more is having a suitable withdrawal strategy: one that aims to take volatility into account, potentially avoiding selling stocks when they’re declining in value.
In this week’s episode of Managing Your Financial Future, podcast host Johnny Dean talks with “Professor ” Rick Plum, CFP® about why a “Buckets” strategy may help to actually counteract the effects of market volatility on a retiree’s portfolio.
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Rick Plum is a registered representative with, and securities and advisory services offered through LPL Financial, a registered investment advisor and member FINRA/SIPC. The investment professionals are affiliated with LPL Financial and are conducting business using the name Lucia Capital Group, a separate entity from LPL Financial.
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