Ask Terry Questions What age is “close” to retirement for stock investing?

What age is “close” to retirement for stock investing?

By Terry Savage on October 12, 2018 | Investments

Terry, just read your latest newsletter. Spot on! I’ve been concerned all year, frequently meeting with my Edward Jones Rep. So my question is, I am 62 years old and own and operate a family business. I was hoping to work until 66 and at that time look into selling for the purpose of retirement. So at 62, am I considered ” Close” and pull back, or with another 4-5 years ahead of me should I just ” Stay the Course”?? Thanks

Terry Says

I would say you are VERY close. Of course, you won’t be taking everything out of your retirement account when you retire! The goal is to make it last your lifetime, likely another 25 years after retirement.
The key point here is that you won’t be contributing to your account after you retire. So you won’t be able to “take advantage” of lower prices to buy more stocks for the next big upturn.
You will have reached a completely different stage of life — no more money coming in, no more investments being made — and suddenly that “pot” of retirement money becomes a lot more precious.
That’s why you need some “chicken money” — savings, Treasury bills, short-term safety — to let you sleep at night. And you likely need to diversify your retirement investments into more conservative (equity/income) choices now.

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