Stay Growth Oriented with Retirement and Investment Accounts

Stay growth oriented with retirement and investment accounts

As you approach retirement, should you become more conservative with your retirement and investment accounts? How will your income keep up with or surpass cost of living increases for three to four decades? Your assets and income must grow. Ownership of mainstream stocks is one way to do it. 

Since 1802, stocks have averaged 7% per year higher than inflation and doubled the long-term results of bonds*. The appeal of being conservative is the feeling of safety, but being too conservative can undermine your long-term quality of life. When your money grows too slowly, you increase the chances of spending down your assets prematurely simply because they cannot keep pace with rising costs. 

The practices in the Retirement Rules of the Road encourage a growth oriented mindset. The decision to seek long-term growth or short-term comfort can shape the quality of life you and your family experience and the legacy you leave behind.  

*Stocks for the Long Run, Sixth Edition, Jeremy Siegel