mickeyd
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
I have no idea who or what the Putnam Institute is, but 10% (or even 25%) equity position for a retiree is way too conservative for me. Looks like junk to me unless the retiree is super scared of stocks and is afraid of risk.
Am I missing something?
Am I missing something?
Putnam: 10% Is Optimal Retirement Equity AllocationResearch released by the Putnam Institute today produced a conclusion that should shock the financial services industry, including the financial planning profession. The finding that the optimal equity allocation for retirees' portfolio is about 10% is so far out of line with conventional wisdom it left the study's author, Putnam Institute research director Van Harlow, quite surprised.
Depending on various factors, the optimal equity allocation could be as high as 25%, according to the research—still well below widely accepted thinking on retirement investing.
How did Putnam reach this radical conclusion? According to Harlow, the biggest risk retirees face is "sequence of return" risk, or retiring just as a nasty bear market begins.