Stocks’ Slide Is Playing Havoc With Older Americans’ Dreams – while I do feel bad for these people, I have to ask, what is the rationale of putting your entire nest egg in equities after you’ve retired. Sure your broker is going to tell you to buy, that’s what they get paid to do, but stocks are inherently high risk with no guarantee on the principle. I guess a lot of people lost sight of that during the boom times. If I had $2 million, I’d put them in bonds, or better yet in annuities. One of those suckers (guaranteed principle and rate of return) will still average you around 5-7%/yr. Off of $2 million principle, we’re talking about a pretty damn comfortable retirement lifestyle.
random($foo) is the occassionally still updated blog of Leonard Lin. My pics are on Flickr, code is on Github. @lhl on Twitter. More »