Advisors Now Recommend Seniors Keep More Money in Stocks Longer to Maintain Income and Avoid Taxes
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Conventional wisdom used to be to shift investments to bonds and cash when older, but now advisors recommend keeping more in stocks.
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Many seniors have 60-80% or more of their portfolios in stocks to avoid capital gains taxes and have income.
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How much to have in stocks depends on health, lifestyle, debt, bills, risk tolerance. An old rule was 100-age=stock %.
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Now with longer lifespans, a formula is 110 or 120-age=% in stocks. So 75=35-45% stocks.
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Analysis shows people 70+ have 31-33% in US stocks, 5-7% international stocks, and 10-11% in bonds.