Should senior citizens invest in equities while retired?

Answer 1

ABSOLUTELY, but obviously they should make up a much smaller part of your portfolio than they did when you were in your 20s. an all bond and cash portfolio would have much higher volitility than a one with a proper allocation of equities.

Answer 2

I N F L A T I O N

when you retire you may very well live for 30 more years. If you have all your money in income (bonds and such) inbbflation will more then cut it in half.

while you want to mitigate risk due to volatility, you must remember to mitigate inflation risk.

That's not to say you want it all in equities, most should be in income producing instruments. But you also want some growth.

preferred stocks, dividend stocks and bonds as long as they are producing income, what difference does it make if the prices fluctuates.

Answer 3

Depends on if you are still wishing to gamble, or if you are purely wanting guaranteed safety. I usually suggest to my clients as a rule of thumb to take their age, example 74 and figure that 74% of their liquid assets be invested in a safe, guaranteed interest rate and not pay a financial planner to invest for them the same as they would a 38 year old. Safety, Safety, Safety!!!!

If you needed that money for Long Term Care needs, what if the market was at an all time low when you needed to cash it out? Not a good idea.

Answer 4

Of course. Maybe with a portfolio tilted toward the bluer chips. But, certainly keep some money in equities...depending on a variety of circumstances, up to 50% or so.

Answer 5

I sure hope so. I have been retired since 98 and that is how I make my money now. And I know many others who do also. Of course it helps if they are not senile. But then I have been given the impression that many investment advisers are senile.

Answer 6

yes, nothing wrong invest in equity whie retired. If you invest the right way, it should always enhance your return consistently in turn improve your standard of living

Answer 7

The older I get I will invest less in equities...

Answer 8

That depends on a number of factors. When do you need the money, how risky are you, what goals do you have for the growth.
Usually, the closer you get to needing it, the more in bonds you should be since they are less volatile. Also, the shorter term bonds are even less risky.

Answer 9

seniors, in my opinion should if they can deversify some of their assets in equities.you will perhaps be taking on more risk for a potentialy higher return consisting of income and or apreciation.those over 55 years old own much of the nations wealth, as reported in the seniorjournal listed below.

Answer 10

I quit when I dropped $35,000 in one night and Intel has never recovered. When you're old you can't recover from that kind of loss.

Now I do Network Marketing and make just as much as I did doing stocks without the risk.