Ask Terry Questions Managed or index accts. for retirement funds?

Managed or index accts. for retirement funds?

By Terry Savage on December 14, 2017 | Investments

My hubby and myself are in our late 70s and each have 2 managed funds. One is an S&P 500. I have been considering switching to one of the index funds that follow the S&P. Is there a website I can see a comparison between the 2 for say 5-10 year period? Do you have a suggestion?

Terry Says

If you are in your late 70s and have all your money in the stock market, you need better advice!  This is the time you should become more conservative in your asset allocation -- and yes, I would have said that a year and 5,000 points ago!  Unless you have a LOT of money and expect to leave the balance in your accounts to your children, you might want to move some money into  a more conservative fund, like an equity-income fund.  And likely have some money outside your account for unexpected expenses so you are not forced to liquidate in a down market. Remember, past performance is no guarantee of the future. And ALL real S&P 500 index funds that track the index perform almost exactly the same. The real question is whether you should diversify outside the stock market.



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