No. of Recommendations: 0
David stated on Friday in his commentary in the RB Port

"To restate the Foolish investment approach succinctly,
once again:
----Now, as you get older, you need to begin to move
retirement money(whatever money you will need) into bonds and T-bills."

I have great difficulty in understanding that suggestion for a number of foolish reasons. Most retirees should keep their investments in good blue chip stocks with decent dividends; for example.in Canada, in any or several of the 5 big banks, plus a number of other solid companies. Dividends offer a favourable tax treatment to the recipient, and in addition, the dividends increase over time and in most cases, exceed the cost of living. In addition, payments are made far more frequently during the year, enabling better money management and $ flow. To place most $ in fixed securities as suggested, guarantees a constant erosion of purchasing power from the income derived as well as an erosion in real $ terms in the value of one's investments. One may wish to place a percentage of available funds in fixed securities, but the advice reiterated by David is not very foolish.
RA Street
Print the post  

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement