To live a happy, independent life with less psychological problems when you retire depends on the amount of money you save as your social benefit or pension. Currently, in USA people are living much longer after their retirement age (65 years). Imagine spending three or two more decades of your life depending on the working generation or being affected by economic unrest like inflation. Therefore before you hit that age, you need a consistent slug of equities for returns that will sustain you despite the upheavals.
Chief Investment Strategist of the Oxford Club Mr. Alexander Green tells more on how much a retiree should have in stocks to overcome losses. It is common to have retirees having a lot of money in stock. Nevertheless, when young and contributing regularly towards the investment portfolio, the bear market will always give you the best buying opportunities.
Retiring and use of investments to supplement the social security benefits or pension can be a nightmare. To avoid the risk of having a smaller portfolio due to unrests when the market stabilizes and rebounds, Alexander urges us to think about the percentage of the collection that we have in stock. We should estimate the amount of money we need during low-risk bonds as well as our monthly spending. Although, the bear market sometimes can be severe which makes the stock to take longer to recover, being conservative and saving for five years should be the solution.
For those who have a relatively low portfolio and need to put the stock on hold for five years, they should work longer, save, invest, and reduce the expenses. Investment U an educational branch of Oxford club help young people on how to start saving early and investing on the higher rate of returns.
The Oxford Club was founded in 1989 and has members in over 100 different countries. Oxford being a financial organization that is privately owned provides investment research to various clients and its members. The company have a long history of excellence in the provision of market opportunities and planning for a long-term financial stability. They research and share with their members’ investments opportunities with the high-profit margin as well as low risks.