Did you invest in stocks in the 70s? Do you remember the 70s? Like they say about Woodstock, if you do, “you weren’t there, man!” Look at my chart below to see why it was so forgettable.
Imagine retiring in the late 60s and spending your retirement years investing in stocks. Not much fun. But, if you went into retirement with a plan, there’s a good chance you could weather the storm by owning a mix of diversified assets. When I say plan, I mean preparing before retirement with answers to questions like:
- How much can I “afford” to spend?
- What kind of yield can I get on blue-chip dividend payers?
- Should I ladder a bond portfolio with short-term average maturities?
- How will a basket of currencies help diversify my dollar exposure?
- Does gold make sense right now?
- Can I work part-time in between bucket list trips?
- Does it make sense to invest in real estate? How about farmland?
- What is the optimal asset allocation that will help me survive and thrive?
Let’s focus on that last one. What if you had someone working with you to keep you on track with your allocation mix? What if he advised you to get your lazy cash off the Bean Bag chair and put it to work buying stocks while others are selling? Wouldn’t it be nice to have your life savings riding on an income stream generation rather than on fluctuating prices? What if you were investing in blue chip dividend-paying stocks that actually pay you for being invested? Isn’t that what investing is, receiving income and increasing it over time?
Originally posted on Your Survival Guy.