Tuesday, March 13, 2018

My 7 Must-Own Stocks to Build Up Your Retirement | InvestorPlace

My 7 Must-Own Stocks to Build Up Your Retirement | InvestorPlace: I have a completely different philosophy for retirement stocks than virtually anybody else in the financial markets.

The prevailing wisdom is to overweight in bonds in order to generate income and to allegedly reduce volatility in the overall portfolio. That’s horrible advice, mostly because bonds and bond funds are actually more volatile than stocks are.

The other terrible advice that is given to current and pending retirees is that retirement investors should plow money into blue-chip stocks that pay dividends of 2% to 3%.

That is also terrible advice because ever since the Federal Reserve reduced yields, a lot of retirement investors have moved further out on the risk curve into exactly these stocks, bidding them up to levels that are unsustainable.

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