If someone has failed to save enough for retirement by their 50s, it may be tempting to build a portfolio full of stocks to play catchup. The financial experts interviewed by 24/7 Wall St. generally advise against this move. While some stocks are still important in a portfolio to help manage inflation, a bad stretch in the stock market can completely devastate a person’s financial goals. “That’s financ ial suicide,” Sestina calls such a move. “They can’t afford the risk with so little time.”
Middleton says he counsels his clients to take on as little risk as possible in order to reach their retirement goals. Someone who has not saved anything for retirement by age 50 would need to take more, but not excessively more, risk than someone who saved since they were in their 20s. “I just warn [clients] that the plan might not work,” Middleton says.
(iStock Photo) More From 24/7 Wall St.:
: States with the Safest Hospitals Banks Hiding the Most and Least Fees Thirteen Ways to Sell Your Home in 2012 The opinions expressed are solely those of the author and do not necessarily reflect the views of Comcast.