Investing After 70 Can Focus On A Variety of Investments

When you're investing after 70, take time to consider your temperament and how you wish to spend your money - and remember to keep a diverse portfolio 


investing after 70

There’s a popular investment theory that insists at 70 and beyond, you should move your investment money into low-risk assets. Investing after 70 should be done with great caution, they say, because it is no time to put your money at risk since this is the time you need it most. At least, that’s what most money managers would have you believe.

The reality of the situation is that there is more than one kind of 70+ investor out there, and there could be plenty of reasons you would want your money in places with more growth potential. As with most things in life, the same solution isn’t right for everybody. Commercial advisors pitch the same advice to everybody because they know it will work most of the time. But, what if you need something different?

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Mix both stocks and bonds when you’re investing after 70 years of age

Yes, conventional wisdom dictates that you want a more conservative approach to your investments and it becomes more essential for you to control your assets. But the most important thing to consider is how you intend to use these assets.

Do you want to use every bit of your savings to enjoy your retirement to the fullest? Well, there is still a lot of life to live after 70, and you’ll need to make sure your money has grown enough or keeps growing.

Would you prefer to pass as much of your money as possible to the next generation? In that case, there could be advantages to having a mix of secure bonds and growth stocks to give your money a strong foundation for preservation without removing its potential for growth. You may also want to look into taking some of your money out to put it into vehicles that are more efficient for passing wealth.

Perhaps you’ve already done a great job saving for retirement, and it is time for you to move into a complete preservation state of mind. Even then, there could still be a valuable place for stocks within your portfolio.

Investing after 70 with passive investments like Vanguard’s Target Retirement Funds

Vanguard Target Retirement Funds are already highly touted for commercial consumers because of their expense ratios. The Target Retirement Funds’ average expense ratio is 0.10%, helping you keep more of your investment in your pocket instead of going into the management of the fund itself.

These funds help take the complexities out of investing by setting you up with the right fund for you, either based on your age or years to retirement. The automatic rebalancing of these funds is a powerful asset, especially with the Vanguard team’s highly skilled management.

Just remember, your future plans don’t belong in a box because you don’t have the same intentions as everyone else. Make sure you’re thinking about how your particular investment vehicles are serving your overall goals.

What are your intentions for the money you have saved? What plans for investing after 70 do you have?

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