Comments on: How much stock should older investors hold? Fri, 05 Dec 2014 11:27:18 +0000 hourly 1 By: SayHey Fri, 19 Aug 2011 17:48:41 +0000 Having just turned 60, anything above 35%- 40% equity is too high risk.

By: txgadfly Fri, 19 Aug 2011 16:55:04 +0000 It is foolish to expect *ANY* payment from either Social Security or Medicare for anyone younger than 60. Those so called Government “Insurance” plans were nothing but a boondoggle from the start, as anyone with a desk calculator could have discovered at the time they were created. The only thing you can count on from Government is more taxes and no responsiveness to your own needs.

By: SeniorMoment Fri, 19 Aug 2011 09:47:50 +0000 The truth is there is no good answer, since the right answer depends on the ability to predict future inflation. Stocks offer far better inflation protection than bonds do, since bonds resale (if not held to maturity) prices fall as interest rates rise with inflation and fixed bond interest rates become liabilities. A decent hedge against inflation while managing risks is to buy U. S. government I-bond debt, which has interest determined by a markup plus inflation.

By: SanPa Fri, 19 Aug 2011 06:50:50 +0000 The author assumes acceptable inflation expectations. The last decade with 6-10% per year inflation will not seem so bad against what may lie ahead.

By: robb1 Fri, 19 Aug 2011 00:31:23 +0000 buy yourself things or vacations u can enjoy while u can, investments do not buy more time on this planet.

By: tmc Thu, 18 Aug 2011 19:17:21 +0000 The stock market is a joke. It should be abolished. As P.T. Barnum once said….

By: Missinginaction Thu, 18 Aug 2011 15:34:26 +0000 OK, the article states:

“Start by crafting a serious retirement plan that includes a credible estimate of spending needs, balanced against income you can count on from Social Security, pensions and the like; then, back into a portfolio equity allocation that provides enough growth to fill in the gaps but exposes you to as little risk as possible.”

I’ll agree with the first part but how the heck does one “back into a portfolio equity allocation that provides enough growth to fill in the gaps but exposes you to as little risk as possible.”?

Ya know folks, as a retired businessman with a backround in economics I look at todays markets and simply see a casino. I never sold off in 2008 or 2009, however once I determined that the stimulus and QE’s were simply shoveling money into the financials and transfering bad debt from the private to the public balance sheet(s) I decided to reduce my equity balance to zero in 2010. QE2 was the breaking point for me.

Mark Twain is quoted as saying “I am more concerned about the return OF my money than the return ON my money”. He should know, as he made and lost fortunes in his long life. I didn’t always agree with him but I do now.

Perhaps older retirees should realize that the small investor cannot possibly see a return of even 5% annually when the overall economy is growing at perhaps 1 – 2% at best.

Financial planners cannot tell tell their clients that however. To do so would put them on the unemployment lines.

FDIC insured 1 year certificates of deposit will get you 1% give or take a few basis points. Not much, but at least you’ll get your money back.

We’ve ratcheted back our spending, especially on unnecessary consumer products. We’re quickly realizing that we don’t now and actually never “needed” lots of the things we purchased anyway.

We’re still traveling though.

Equities? Oh, we’ll probably buy them again someday, if and when these global debt issues are seriously dealt with. That a long way off though.

By: tradestreaming Thu, 18 Aug 2011 15:28:40 +0000 Money quote: So, how much stock should older investors hold? The correct answer, in my view: as little as possible while maintaining high confidence that you can meet your retirement goals.

So true — as in most things investment related, having a plan also trumps having no plan. The problem is that it’s so hard to say anything is high confidence when people are retiring with too little money to *make it*