As an investor gets older, the portfolio should get more conservative. That was one of the adages of Wall Street. But retirees are now getting different advice, reports CBS MarketWatch Correspondent Emily Church.
Retired former welder Robert Leaf has a winning investment strategy: he puts 70 percent of his money into stocks. And to
make sure he's on the right track, he attends investment summits.
|Managing Your Money|
The rule of thumb used to be "the older you get, the more of the savings you put into safe, fixed return investments." Now, as yields on those investments turn lower, some seniors are finding themselves in trouble.
"They have had to cut back on their lifestyle, and they have had to cut back on basic necessities because as interest rates have gone down, they have not been able to maintain some of the needs that they have in their own household," Hayes says.
That advice hit home to Augusta Field, now 60. She started a new career when she was in her late 40s and is about to invest for the first time.
"I would like to put it in something that has more risk to it, which has, sort of, quicker growth," Field says.
Hayes tells seniors to act like younger investors.
"What I tell many older adults and seniors is that you have to ride out the storm. That again, long-term, you're still going to be living 10 to 20 to 30 years in retirement," Hayes says.
Leaf tells fellow seniors to put aside their stock market jitters.
"You have faith in the country, and you believe in the country, then you're going to stay in the market," he says.
Written By Emily Church