Many retirees and soon to be retirees have a simple question, which is how much money they should have invested in stocks. The answer to this depends on several different factors, including your age, your health, your monthly overhead and the size of your portfolio. Figuring this out and correctly investing in stocks is a process called retirement balancing.
Even though typical Americans are living longer, the retirement age is 65. Some people can expect to live decades after their retirement. With this possibility, there needs to be serious thought on assets after retirement. Especially while considering factors that are out of the individual’s control. These factors include inflation. Although it may not be very prevalent in today’s economy, no one can predict what will happen in the future.
While having too little money invested in stocks can cause a loss of opportunity, there is also the threat of having too much money invested. There is a different mindset between a young optimistic investor and an aging individual who is out of work and depending on their investments. If the market starts to go down, these individuals will often sell their stocks. This results in a smaller portfolio when the market rebounds.
A great way to avoid this risk is through what The Oxford Club refers to as retirement rebalancing. To do this one must change their mindset about stocks. Instead of thinking about the percentage of your portfolio invested in stocks, one should calculate how much money they need in low-risk bonds and cash to fund monthly overhead.
A good rule of thumb is that your portfolio should account for at least five years of expenses. If not, retirees face a difficult set of options, such as retire later, save more, invest at a higher rate of return, and reducing living expenses.
The Oxford Club is a private and multinational network of highly trusted investors and entrepreneurs. They have been in business for over two decades.
The mission of The Oxford Club is to help their members grow and protect their wealth. They have a multifaceted investment philosophy and knowledge of succeeding through various market conditions. They have a talent of selecting investment opportunities with only the greatest potential gains and lowest risks.
Learn more about The Oxford Club investment opportunities here: https://www.indeed.com/q-The-Oxford-Club-jobs.html