What Percentage of Stocks Should You Own in Retirement? – Episode 186
You may have heard that stocks are too volatile for retired people to own. In fact, there’s an old rule-of-thumb formula that says you should 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 have a greater exposure to stocks as they get older. What counts more is having a withdrawal strategy that takes into account the short-term risks of investing in stocks by creating the time – and cash flow – necessary to overcome those risks.
Find out more from podcast host Rick “the Professor” Plum, CFP® and Johnny Dean on this week’s episode of Managing Your Financial Future!
Important Information:
You should always seek counsel of the appropriate advisor prior to making any investment decision. All investments are subject to risk including the loss of principal. This material was gathered from sources believed to be reliable, however, its accuracy cannot be guaranteed.
It is important to keep in mind that investments in fixed income products are subject to liquidity, interest rate, financial, inflation risks and special tax liabilities. Interest may be subject to the alternative minimum tax.
Different types of investments and/or investment strategies involve varying levels of risk, and there can be no assurance that any specific investment or investment strategy will be profitable for a client's or prospective client's portfolio, thus, investments may result in a loss of principal.
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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