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64 Don’t Make Me Say I Told You So

there is a different rule for the money you will use for income
in the next three to five years. If you have a portfolio of stocks

or stock mutual funds, and you’re using that money for income
immediately, you may want to move a portion of that money

to a money-market account or short- term CDs. If you have a
portfolio of stocks, and you’re taking money out for income

each month, you can exacerbate your losses in a down market.
I will discuss the risks involved in stocks in the next section.

Summary

► Stocks are the financial instrument that have provided
the highest returns over extended periods of time.

► Stocks have been the investment that gives investors the

best chance to outpace inflation.

► Stocks can grow your assets to provide more income in
retirement or may allow you to leave a financial legacy to

beneficiaries.

Chapter 3: You Must Have Growth In Your Portfolio