If you enjoy an antidote to “common wisdom” read the following from David Levine which is the first of two articles in the NYT.
“WHEN I went to work on Wall Street in 1972, it was an article of faith that older investors should own less common stock than young ones. One rule of thumb suggested that your equity exposure should equal 100 percent minus your age: 70 percent for a 30-year-old, for example, but just 35 percent for someone who is 65.
“Since then, investment practices have evolved considerably, but on the question of how much common stock to own — the single most important question governing investment returns — not much has changed.
“Typical recommendations nowadays propose greater equity exposure than they did 40 years ago, but it is still the overwhelming view among investment counselors that people should reduce their holdings of common stock and beef up their ownership of bonds as they grow older.
“Problem is, it wasn’t very good advice back then, and it’s still poor advice today.
“I know this opinion puts me in the minority, but if you are a retiree or nearing retirement, you should hear me out.
“Let’s begin with the standard view today.”