New Rules for Older Investors - Especially When it Comes to Equities

What are older investors to do right now?

  • Get out of the stock market entirely? 
  • Stay out of the market if you have already decided to get out?
  • Get back into the market now or wait and risk further increases while on the sidelines?
  • Place the majority of your savings in bonds?
  • Purchase an immediate annuity?
  • Purchase that immediate annuity with inflation protection?

Tough questions for both investors and their advisors.

There are some good thoughts and discussions shared in a recent New York Times article.

John Bogle comments on asset allocation decisions and decisions about getting back into the market as an older investor:

“If another decline in the market is going to bankrupt you or put you out of business or destroy your retirement account, you should not go back into the stock market,” said John C. Bogle, the founder of Vanguard and viewed by many as the father of index investing. “It’s not complicated. The stock market can go up and down a lot and nobody really knows how much and when.”

Several financial advisors provide their comments.

A common and fundamental theme is that the old rules and approaches to investment decision making for retirees and near retirees may no longer apply in a post financial crisis environment.

Source: New York Times

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