Capital Investment Advisors

#21 – How Conservatively Do I Need to Invest As I Get Older? The 15/50 Stock Rule

Lately we’ve been inundated with news of people becoming millionaires overnight. 2021 has been the year of the ‘meme’ stock and this phenomenon has made it even more difficult for investors to keep their eye on the ball. For example, AMC recently announced a new program offering perks for shareholders which sent the stock through the roof. This new form of shareholder activism can be exciting but it’s not always a durable investment strategy for long-term investing.

Today we’ll discuss the 15/50 Stock Rule, which helps guide investors in maintaining a balance between risk and reward according to their time horizon. The 15/50 portfolio idea has been around for decades, championed by Columbia Business School professor Benjamin Graham (mentor to famed billionaire investor Warren Buffet), as well as Vanguard founder, John Bogle. In this episode, we’ll focus on the conversation soon-to-be retirees are likely having which is, ‘how much as a percentage of our portfolio should we have in stocks over time?’

 

More on the 15/50 Stock Rule: https://www.wesmoss.com/news/why-investors-should-consider-using-the-15-50-stock-rule

https://www.prnewswire.com/news-releases/morningstar-report-finds-that-retirement-savers-contributions-suffer-even-as-target-date-strategies-rebounded-from-q1-2020-bear-market-301250121.html 

Disclosure: This information is provided to you as a resource for educational purposes and as an example only and is not to be considered investment advice or recommendation or an endorsement of any particular security.  Investing involves risk, including the possible loss of principal. There is no guarantee offered that investment return, yield, or performance will be achieved.  There will be periods of performance fluctuations, including periods of negative returns and periods where dividends will not be paid. Past performance is not indicative of future results when considering any investment vehicle. The mention of any specific security should not be inferred as having been successful or responsible for any investor achieving their investment goals.  Additionally, the mention of any specific security is not to infer investment success of the security or of any portfolio.  A reader may request a list of all recommendations made by Capital Investment Advisors within the immediately preceding period of one year upon written request to Capital Investment Advisors.  It is not known whether any investor holding the mentioned securities have achieved their investment goals or experienced appreciation of their portfolio. This information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. This information is not intended to, and should not, form a primary basis for any investment decision that you may make. Always consult your own legal, tax, or investment advisor before making any investment/tax/estate/financial planning considerations or decisions.

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