Stock market for retiree
Terry I am retired but still have a income from rents and interest but I am still bothered by drops in the market like we have lately and seeing my accounts drop how do you train your self to figure out when is the time to sell and buy? Thank you for your help
Terry Says
If you’re a long term investor, you just need to focus on asset allocation — ie, how much in stocks, how much in bonds,and how much LIQUIDITY do you need to ride out a bear market. Retirees need to give special thought to this issue — BEFORE the market falls. And that’s why for nearly a year I have been warning people to protect their profits.
When you have enough liquidity, you can sleep at night through the ups and downs of the stock market. A retiree shouldn’t be worried about buying into the market at this point, by using liquidity, unless you’re trying to build a portfolio to leave to your heirs.
And if you don’t have enough liquidity, there’s an old saying: Sell down to the sleeping point. That means, sell down until you aren’t up at night worried about your investments. Since this bear market could go farther and last longer than most people think, it is never to late to do that.
