Retirement, Risk and Return
Jun 11th, 2009 | By Charles L. Stanley CFP® ChFC® AIF® | Category: 3rd Quarter (Age 40-60), Featured Articles
This recent extremely volatile stock market has gotten many near retirees wondering about their future and how they can safely invest for their retirement. Many, like their grandparents following the Great Depression, are thinking they will not hold stocks. They are too volatile and risky. Savings accounts, Savings Bonds and maybe Treasury Bills will do just fine, thank you. Well, maybe not so. Can you spell inflation? We can’t forget about that ongoing devastating risk that eats away slowly (and sometimes not so slowly) at our purchasing power.
In the video linked below, David Booth, co-founder and CEO of Dimensional Fund Advisors, discusses the importance of balancing volatility risk and purchasing power risk when investing for retirement. He explains that T-bills have not produced the real returns necessary to preserve living standards over the long haul, and illustrates how investors can manage both types of risk through an appropriate commitment to stocks.
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“Investor Education for Main Street America”
"Investor Education for Main Street America"
