Oxford Club: Why You Should Consider Retirement Rebalance


Many people close to retiring have the same question. Their question is, “how much money should a retiree have in stocks?”. The answer is that there is not one good answer for everyone as it is dependent on many factors. These factor are ones health, age, monthly spending, and the size of the retiree’s portfolio. The term used for this is retirement rebalancing says Alex Green of the Oxford Club.

Today, Americans are living exceptionally longer lives. Depending on what age a person decides to retire and their over all health, this can mean two to three decades of retirement. When preparing for retirement, the length if possible retirement should be considered, along with the possibility of inflation in the cost of living.

Retirees still have the risk of having too much money in stocks, but there is also risks associated as well. Retirement rebalancing helps retirees avoid these risks.

Retirement rebalancing works differently because instead of looking at the percentage of stocks in their portfolio, retirees look at the monthly overhead, focusing on how much cash is needed in low risk bonds. This done by thinking about how much money is needed for a month, then set aside five years worth of money needed for living. Be conservative with your money, and think about the bear market when stocks go down to a low.

When stocks are at their high, then is the time to liquidate stocks and save bonds and cash for when the market reaches a low.

If a person of retirement age dies not have a large enough portfolio to set aside five years of living expenses. There is a list of things to do to gain it. First, is work longer so that there is enough, save more for retirement, make investments at a higher rate if return, set aside a three to four year reserve instead, and reduce living expenses if necessary. This is more valuable then how much in stocks should one have before retirement.

The Oxford Club is a private network of investors and entrepreneurs who are successful from all across the globe. The strategies they provide are used by themselves personally. The Oxford Club makes many investment recommendations from all areas if finance.