This Trick Can Help You Big Time in Retirement

And it answers a question we get all the time... SPECIAL OPPORTUNITIES [The Oxford Club Special Opportunities]( Note From Editorial Director Justin Fritz-Rushing: There's a [MAJOR shift that's occurring in the market right now](. Money is pouring out of the big tech stocks that have dominated the market for 20 years... and into much smaller stocks poised to dominate the future. As The Wall Street Journal put it, "[A stock market rotation of historic proportions is taking shape]( The Oxford Club's Chief Investment Strategist Alexander Green says that [$1,000 in each of these seven stocks could grow to over $1 million in the next six years](. --------------------------------------------------------------- How Much Retirees Should Have in Stocks Alexander Green, Chief Investment Strategist, The Oxford Club [Alexander Green] At a recent investment conference, an attendee asked a question I've heard countless times before... "Once I reach retirement, how much money should I have in stocks?" The answer depends, in part, on your age, your health, your monthly overhead, and the size of your portfolio. So let me touch on these briefly and then provide a valuable, real-world solution. It's called retirement rebalancing. Americans today are living longer than ever. If you retire at 65 in reasonably good health, for example, you could be looking at up to three full decades in retirement. Given a 20- or 30-year time horizon, you need a serious slug of equities to generate a long-term return that comfortably exceeds the rate of inflation. Because while the level of inflation has declined considerably over the last 18 months, it may rise sharply again in the future, especially a future measured in decades. (Recall the hyperinflationary late '70s and early '80s.) Yet retirees also face the potential threat of having too much money in stocks. After all, when you're young and contributing to your investment portfolio, a bear market gives you wonderful buying opportunities. But when you're out of the work force and depending on your investments to supplement your monthly pension or Social Security payments, cashing in stocks during a serious bear market - like the one we experienced during the financial crisis - will result in a significantly smaller portfolio when the market finally rebounds. How do you avoid this risk? With retirement rebalancing. Here's how it works. Instead of thinking about what percentage of your portfolio is in stocks, calculate how much money you need in low-risk bonds and cash to fund your monthly overhead. Let's say, for example, that you need $5,000 a month - or $60,000 a year - to cover the difference between any public or private pensions and your monthly overhead. Then set aside four years' worth of living expenses or, in this case, $240,000. Here's why... The average bear market in the U.S. lasts 15 months. The average decline is 32%. And the average time to recover to the old high is another 2.1 years. So the average round trip from the beginning of the slide to full recovery is approximately 3 1/2 years. However, sometimes bear markets are more severe and stocks take longer to recover. So let's be conservative and set aside enough money for a four-year round trip from peak to trough to new peak. When the market is at or near new highs - as it is now - retirement rebalancing means liquidating stocks (not bonds or cash) to pay your expenses and fund that extra year of reserves. When we're in a bear market, however, rather than cashing in your stocks at low prices, you pay your expenses out of your four-year reserve. If the market keeps going down the next year - and the year after - you continue to live off that shrinking reserve and refrain from cashing in your stocks at bear market prices. When the market finally recovers to new highs, you then "retirement rebalance" once more by cashing in enough equities to restock your four-year reserve. This is a workable, real-world solution to the perennial question of how much to keep in stocks. What if you don't have a portfolio large enough to set aside four years' worth of expenses? Then you face a different set of options: - Work longer - Save more - Invest at a higher rate of return - Set aside a slightly riskier three- or four-year reserve - And/or reduce your living expenses. But for those who have stuck to the principles we espouse here - starting early, saving regularly, and investing wisely - retirement rebalancing is an effective solution to that age-old retirement conundrum: How much should I have in stocks? Good investing, Alex OPPORTUNITIES OF INTEREST - [How to Profit From the Surge (Outside the Stock Market)...]( - [Can you guess these FIVE simple letters? _ _ _ _ _ They've been the key to beating the market by more than 550% -- > Answer revealed HERE]( - [For Free? Click Here to Get the Names and Ticker Symbols of the Top Dividend Stocks in the Market!]( SPONSORED [$4,000 in Value, YOURS FREE!]( The Oxford Club's reigning #1-ranked VIP trading research service beat the S&P's relative performance by 3-to-1 in 2023. This service remains red-hot, booking wins as high as 182% in 2.5 months... 275% in 3.5 months... and 386% in 2.5 months here in 2024. To celebrate this success, we're offering you a FREE bonus year - valued at $4,000 - if you're one of the first 75 to respond before midnight tonight. [Click here to see how to claim it asap.]( [The Oxford Club] You are receiving this email because you subscribed to Oxford Club Special Opportunities. Oxford Club Special Opportunities is published by The Oxford Club. Questions? Check out our [FAQs](. Trying to reach us? [Contact us here.]( Please do not reply to this email as it goes to an unmonitored inbox. [Privacy Policy]( | [Whitelist Oxford Club Special Opportunities]( | [Unsubscribe]( © 2024 The Oxford Club, LLC All Rights Reserved The Oxford Club | [105 West Monument Street](#) | [Baltimore, MD 21201](#) North America: [1.800.589.3430](#) | International: [+1.443.353.4334](#) | Fax: [1.410.329.1923](#) [Oxfordclub.com]( Nothing published by The Oxford Club should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed personalized investment advice. We allow the editors of our publications to recommend securities that they own themselves. However, our policy prohibits editors from exiting a personal trade while the recommendation to subscribers is open. In no circumstance may an editor sell a security before subscribers have a fair opportunity to exit. The length of time an editor must wait after subscribers have been advised to exit a play depends on the type of publication. All other employees and agents must wait 24 hours after publication before trading on a recommendation. Any investments recommended by The Oxford Club should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company. Protected by copyright laws of the United States and international treaties. The information found on this website may only be used pursuant to the membership or subscription agreement and any reproduction, copying or redistribution (electronic or otherwise, including on the world wide web), in whole or in part, is strictly prohibited without the express written permission of The Oxford Club, LLC, 105 West Monument Street, Baltimore, MD 21201.