Dividends4Life: Retirees should hold stocks too

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Retirees should hold stocks too

Posted by D4L | Tuesday, November 02, 2010 | | 0 comments »

It’s a mistake to assume that investing in stocks is just for the young or those still working. Yes, only long-term money should be parked in the stock market, as it can fall sharply and remain down for one or more years. But don’t think of your retirement date as the end of the line for you. You may retire at age 65 and then live 30 more years. It would be a shame to be entirely out of the stock market during all that time, for several reasons.

For starters, you won’t need to access all of your nest egg the moment you retire. You’ll tap a little at first, and more the next year, and so on. Some of it will remain invested for 10 or 20 or more years. Some or much of that money can serve you well in stocks. As a retiree, you’ll want your nest egg to grow, if possible, and stocks are one of the best tools for that. Bonds have their place, offering fixed income, but according to research by business professor Jeremy Siegel, stocks have outperformed bonds 82 percent of the time over all 10-year periods between 1871 and 2001, 95 percent of the time over all 20-year periods, and 99 percent of the time over all 30-year periods!

Source: telegram.com

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