Percentage of stocks in portfolio based on age.
My 84 year old step mother has 85% of her portfolio in stocks. $4M+ She is enamored with her financial advisor. “He has her in all the same stocks that he has “ is her reasoning that he is stearing her right. No proof of this of course. We know this is not correct, but she respects your opinion more than us.
What is an acceptable ratio for stocks to bonds based on age? 100- age?
Terry Says
It’s not a question of age, but a question of RISK TOLERANCE.
So far, the advisor has been right. Stocks are near their all-time highs. But a bear market could easily wipe out 30% or more of her portfolio. One will come along – eventually!
Part of the consideration here is her need for money to live on, and how a market decline might impact her lifestyle.
Might I suggest a meeting with a fee-only FIDUCIARY advisor who is not trying to sell her anything, and will cover not only investments, but estate planning, taxes, gifting etc.
Please watch the video at this link: https://www.terrysavage.com/pam-krueger-wealthramp/
It is the ONLY way I can be sure she will be in good hands.
