Ask Terry Questions Percentage of savings to have in the stock market

Percentage of savings to have in the stock market

By Terry Savage on July 12, 2019 | Investments

I heard you on WGN a few weeks ago and you said that people close to retirement should think about getting out of the market knowing that at some point it will crash. Do you recommend getting completely out or just a large percentage out?


Terry Says

I never recommend being completely OUT of the stock market — unless you have only a very small amount of money and no other assets to help you through a bear market.  But since you know you must withdraw money from an IRA every year, once you reach age 70-1/2 — you need to have some liquidity so you aren’t forced to sell stocks when they have fallen sharply.  Read my most recent column on Risk Management — published just as the market is making new all-time highs — for an understanding of how to manage your investments.

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