We all make mistakes. But what if you could avoid some by identifying them before it’s too late? Here are common mistakes retirees do with their portfolio, why they harm your retirement plan and what you can do to avoid them.
- First, we go back to the cash reserve part. While having one is smart, keeping it too large is a frequent mistake that can greatly lower your returns and impact your retirement plan. How can investors avoid keeping too much cash on the side?
- Improving your average yield at retirement is tempting. This, however, can lead to the second mistake, which is to put income above all. Indeed, the lack of growth often results in dividend cuts. Mike explains how to avoid that.
- Having too many stocks is another point that investors should beware of. The question to ask yourself is: does this company bring you closer or further to your investment strategy?
- Being involved in many different strategies is also a common mistake that can harm one’s portfolio by bringing confusion and duplicates.
- Vero would like to add a note on valuation. Mike doesn’t necessarily put much focus on valuation as a young investor, but Vero wonders if it’s different at retirement?
- Mikes ends by summarizing this two-part episode about Portfolio Management at Retirement.
We have just released the fourth edition of the DSR Recession-Proof Portfolio Workbook!
This workbook is a guide to help you to achieve three things:
- Invest with conviction and address most of your buy & sell questions.
- Build and manage your portfolio through difficult times.
- Enjoy your retirement.
Here’s last week’s episode about portfolio management at retirement. While every situation is unique, we thought of going through the changes Mike will personally do when the time comes. This should give our listeners the points they should consider when starting to draw their retirement plan.
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