I am 55 years old and I have all my portfolio invested in stocks. It’s possible that in the future I will diversify a little bit by investing some money in real estate.
Many financial advisors say that older people should have less money invested in stocks because they are a riskier investment, but I believe that retirees should increase their exposure to the stock market.
I believes that it makes sense for retirees to take a little more risk in their remaining portfolio of stocks and bonds, as more of their remaining wealth is in the form of their pension plans, which is super safe.
Life expectancy in Canada is about 82 years. If we retire at age 65, that means that our money has to work for us another 17 years. In addition, most of us want to leave money for the future generation. If we do, we want to leave them stocks, not bonds, not even real estate.
In addition, you want your money invested in low-cost index funds or low cost index ETFs, you don’t want our money to be in the hands of a commission-based financial who will invest your in high fee investments so that they can make money in trailer fees.
A nice balanced portfolio of Canadian stocks, US stocks, and International stocks should give you the global exposure you will want.
Good luck and thank me later or buy me a coffee. 🙂