August 22, 2018
...AND RICHER...:
One of the Oldest Rules for Retirement Saving Is Wrong, Experts Say. Here's the Fix (ELIZABETH O'BRIEN May 1, 2018, Money)
You know that old rule of thumb to subtract your age from 100 to get the percentage of your portfolio that should be in stocks? Well as they say in Brooklyn, fuhgeddaboudit!"You should not robotically reduce your equity allocation because you're getting older," says Rich Weiss, chief investment officer of multi-asset strategies at American Century Investments. Instead, most investors should pick a stock percentage that feels comfortable and keep it constant throughout retirement, experts say.The old rule might have made more sense back when people weren't living as long. Today, many investors will need their portfolios to last well into their 80s, 90s and even beyond. And you're not going to get much-needed growth if you stay too cautious with stocks.
Posted by Orrin Judd at August 22, 2018 4:02 AM