Saving for Retirement: Should I Invest in Stocks?

There are many retired people relying on their savings for income and not getting relevant and useful advice. This is particularly the case when it comes to investing in stocks.

If this is something you’re considering, what will you need to cover before doing so?

Work out what you need

First of all, when considering investments as a retired person it is important to consider how much risk you can take, and how much income you need. This will help determine what kind of investments to make – how risky they could be, and what kind of return you would like to help you live comfortably.

Get rid of preconceived ideas

Some people say that your stock allocation should be your age subtracted from 100 (therefore if you’re 60, 40% of your portfolio should be shares). A lot of people disagree with this idea though because it is too general and ignores important factors such as what the investor actually wants to get out of the investment.

Get rid of the idea also that bonds are always safer than the stock market – many retirees have started to invest in higher-risk bonds. Investing with incorrect information is very risky so make sure when you make decisions it is based on proper advice and information.

Ask, Ask, Ask

When considering an investment it is always better to ask for personal advice, so you can make an informed decision and do what is best for you.

If you’re looking for financial advice regarding investments, talk to our financial advice team today. Please call on 01926 492406 or email us at enquiries@klofinancialservices.com to make an appointment.