In this week’s Mullooly Asset Management video, Tom and Brendan discuss the heavily debated topic of stocks vs bonds. Many investors believe that once they retire, they need to be fully invested in bonds. A large part of the financial industry has always suggested putting some of your money into bonds. The typical suggestion is to tell people to increase the amount they have invested in bonds as they near retirement. This isn’t bad advice, but the problem is that many investors are realizing they made the move to bonds too early.
When it comes down to the battle of stocks vs bonds, for many people it comes down to safety vs risk. While being invested in stocks might make some investors uneasy, it also gives them the best possibility for growth. If you throw in the towel too early and move into bonds, you may find that you didn’t save enough for retirement. Tom and Brendan talk about a recent New York Times article based on that very topic. While the article itself wasn’t terrific, the thing to take away from it is that in today’s world investors need to keep pushing their pile forward. This might mean staying in stocks for longer than what was originally anticipated. There isn’t much growth potential in bonds.
Make sure to watch this week’s Mullooly Asset Management video to learn more about the stocks vs bonds debate.