Despite the recent struggles of the stock market d, investors with years to go until retirement should not shy away from equities, a financial planner advises.
Despite the struggles of the stock market during the past few months, investors with years to go until retirement should not shy away from equities, according to an investment firm specializing in physician and group practices.
"If you are currently between 35 to 55 and plan to retire at age 65, there is still time to invest in stocks," says R. Stewart Eads, CFA, president of Eads & Heald Investment Counsel in Atlanta, which has counseled physicians for 20 years. "In fact, you may want to be almost totally in stocks during the next couple of years, since the stock market may become the buy of your lifetime."
However, if you are in your late 50s or older and plan to depend heavily on your retirement assets to live, Eads says you may want to blend some bonds into your portfolio to lower up-and-down price movements.
"Investors tend to want to be in stocks when things look rosy and out of stocks when things are somewhat scary," says Eads. "Unfortunately, emotions work against success in stock investing."
Eads recommends building a portfolio with blue-chip companies that can tolerate fluctuations in value and seeking investment counsel that is adept at underweighting the banking and financial industry. To learn more about blue-chip investing, click here.