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|Subject: trouble ahead for most future retirees||Date: 2/16/2013 5:02 PM|
|Author: intercst||Number: 71400 of 78012|
There was already mounting concern for the long-term security of the country’s rapidly graying population. Then the downturn destroyed 40 percent of Americans’ personal wealth, while creating a long period of high unemployment and an environment in which savings accounts pay almost no interest. Although the surging stock market is approaching record highs, most of these gains are flowing to well-off Americans who already are in relatively good shape for retirement.
I've never understood the retirement advice to put a large portion of your portfolio in fixed income securities. (Or worse, put money into a immediate life annuity where a large portion of the premium is lost to the insurance company's fees and costs.) At age 57 and in the 19th year of my early retirement, I have less than 7% of my assets in fixed income, about 6% in real estate (paid-for personal residence and some REITs), with the rest in stocks.
With the stock market near it's record high, the only people who are down 40% should be those that sold their stock in a panic in 2008 and kept everything in a low interest bond fund in the interim.
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