In Santa Fe, New Mexico last week Oxford Club Private Wealth Seminar met. And the age old question was brought up, “Once I reach retirement, how much money should I have in stocks?”. The answer is it depends on your age, health, size of portfolio and monthly overhead. Now more and more Americans are living a longer life, meaning that when people use to retire at 65, they had enough money. Now, since we are living longer you will need more money for your retirement. Although having too much invested during a bear market, can be a cause for financial disaster. By having a lot to cash in on during a bear market will not help you have any money to help supplement your monthly bills during retirement. You can avoid this by doing a retirement rebalance. To do this, you figure out how much you would need a month in cash and low-risk bonds. You should then set this amount aside for at least five years. This is because the average bear market lasts 15 months and can loose up to 32% of a stocks value. The turn around time for your stocks are about 3 years. Although, sometimes it can take up to five years to recover. During this time you would be loosing money rather than being able to supplement your bills. If you don’t have enough in a portfolio to do this there are other options so you can save: Reduce your living expenses, Work longer, save more, set aside three- or four-year reserve rather than five, and invest in a higher return rate.
The Oxford Club is a financial organization that have members in over 100 countries. They offer the top rated investment research and ways to achieve long lasting wealth. They offer free publications to help you, all the way to research services.
They are a selective group that have members that are looking to help each other with investments and helping protect their wealth while maintaining it for many years. They have a easy to use strategy to have help members invest safely, without too much risk.