You’re Never Too Old to Buy Stocks! Here’s Why
Usually, all investors follow one common rule of thumb, which is to move towards more conservative investments and away from stocks as they get older. This is because stocks always carry the risk of losing value, which is something that not everyone would be okay with seeing in their retirement fund.
However, for old investors, here are some reasons why investing in stocks can be a good decision:
You Might Live Longer than You Think
Most people assume that once you reach retirement age, your efforts should be directed towards protecting your assets and not growing them. However, the reality is that many retirees would need money to last them for at least 30 years or more. The only way this can be done is by accumulating it.
In most years, having some money in stocks will allow you to replenish the money that you’ve spent on your portfolio.
Numerous Stocks Can Be Safe Investments
People tend to think of stocks as volatile and risky investments, but actually, most stocks are useful investments for those who want to bring stability to their portfolio.
A common component of retiree accounts, dividend stocks generate income for the investor and usually don’t see a fall or rise dramatically in price. Consumer goods and some other industries have offered steady returns too. Even during bad economic times, stocks like Walmart are a good option. You don’t have to lay off stocks entirely, you just have to find income-producing, stable stocks that can serve you well.
Markets Rebound Relatively Quickly
Even if the stock market takes a big dive, it always goes back up. There have only been a few times in the past when the market has been down consecutively for a few years. However, these years have been followed up with positive returns of greater value. History suggests that if you lose money one year, you’ll make that and more in the next few years. It’s highly unlikely that your entire savings will be drained in one swoop even if you are well into your senior years.
