75% Stocks/Mutual funds and 25% CDs, Money Market Accounts and US savings bonds.
My wife and I are both 75 and are fortunate in that between our pensions and social security, we have approximately $150,000 in retirement income each year. We actually have been saving money each year in retirement (around $50,000 a year). We have no debt at all (condo mortgage paid off). We have around $1,200,000 in assets. Do you think that 75% invested in the Market is too aggressive at our age? Your input is greatly appreciated. Thanks!
Terry Says
That all depends on your goals and your risk tolerance. Is your goal to leave money to your children and grandchildren? If so, then you should use THEIR time horizon, not yours. But that only works if you have the risk tolerance to ride it out when a bear market comes. If you see your stock balance fall 50% will you panic and sell at the bottom?? Or will you figure that’s your kids’ problem?
There’s an old saying that applies here: “Sell down to the sleeping point!”
