Page 2 - Lakewood Village Real Estate Edge April 2019

investing in retirement
YOUR MONEY

INVESTORS IN OR NEARING

LAKEWOOD RETIREMENT SHOULD PAY

VILLAGE ATTENTION TO THE MARKETS

REAL ESTATE EDGE
Publisher by Janet Kidd Stewart “The most important thing you can do is have
Allison Van Wig “The most long-term investment parameters and never violate
CA DRE #00985700 he very young and very old needn’t worry them,” said Jim Paulsen, chief investment strategist
so much about market turbulence, we’re for the Leuthold Group. “You want to operate in a
T often told. Over a long time, volatility important thing range that has nothing to do with whatever is going
smooths out quite nicely for the young. Older on today.”
retirees, hopefully, have tamped down enough risk you can do is At the margin, however, Paulsen thinks there
in their portfolios that a stock shock shouldn’t are opportunities to tweak portfolios to take a
cause much of a blip. have long-term different tack that ultimately helps investors stay
Where does that leave those in the middle, the course. He believes the Federal Reserve’s recent
4435 E Village Rd particularly the ones with five or fewer years dovish signals on inflation pressures may extend
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until retirement or those in the first few years? the bull market in stocks in the coming year. And
562-882-1581 Welcome to the nail-biter years, when a few parameters if consumers re-ignite their own appetites for risk,
Allison@superbroker.com volatile sessions can cause many would-be retirees the case is even stronger.
www.SuperBroker.com to rethink their timing. “Last year the expansion was headed for an end
This column typically explores the retirement and never because we were at full employment and the Fed
levers we can control: spending rates, asset was tightening,” he said. Now, after the Fed has
allocation, investment costs and the like. Focusing violate them.” backed off, he’s leaning toward the bullish case for
on what we can control, experts say, helps distract stock performance remaining strong.
us from we can’t control, which is the haunting He believes there are still opportunities for
worry that a big market dip early in retirement will vulnerable to economic downturns. Experienced international stocks and U.S. financials, though
derail our best-laid plans. sailors can keep a ship moving in a variety of wind he’s less enthusiastic about former tech darlings like
Does that mean we should never think about conditions, but they can’t control nature. Facebook and Amazon.
6425 Busch Blvd., market forecasts and timing? Plenty of evidence That’s where so-called tactical investing strategies Whether Paulsen’s take on the economy
Columbus, OH 43229
877.872.3080 suggests that is precisely the thing to do. Studies come into play. Investors pick a mix of stocks and convinces you to slightly tilt your nest egg toward
www.DiscoverPubs.com have shown investors achieved better returns when bonds appropriate for their age and risk tolerance, more risk—and slight is the operative word after
they invested lump sums rather than dribbling in but tilt a small portion of the portfolio to reflect such a long bull market—or it simply helps you
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and articles distributed by the money over time to take advantage of lower current economic or market trends. For example, resist pulling out of stocks altogether, make sure
Tribune News Services and stock prices during downturns. someone with a recommended asset allocation of your core asset allocation is strong. If it is, even a
Brandpoint where noted.
Realistically, though, most people struggle to 60 percent stocks and 40 percent bonds might strong wind won’t blow you too far off course. n
© Copyright 2019 by ignore big economic and market events in the years allow the stock portion to swell or shrink by 5 to
Discover Publications, Inc.
All rights reserved. leading up to retirement. Likewise, people in their 10 percentage points if monetary policy and other ©2019 Tribune Content Agency, LLC
first decade of post-work life perhaps feel even more economic factors were pointing in one direction. Distributed by Tribune Content Agency, LLC
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