Quote:
Originally Posted by Happydaz
Are you saying a retired person living in the Villages should have 100% of his portfolio in the stock market? A balanced account will have a mixture of stocks and bonds and the return has been in the 6-8% range. If we had a stock market crash that lasted a number of years an elderly person would be grateful that half his money was in bonds as he needs to take money out each year to live on.
|
I agree that you shouldn't have 100 percent of your investments in the stock market. But you can have 40 percent in an S&P stock index fund, 40 percent in a bond index fund, and 20 percent in a money market fund. And never buy an individual stock or bond or ever pay an advisor an AUM fee. You will do just fine and probably better than paying an advisor.