What’s A Senior To Do?

Jan 7th, 2009 – Comment

It is my firm belief that the only senior who should be buying common stock is Warren Buffett or a very seasoned trader.

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Lou Schizas is an equities analyst, investor, entrepreneur, professor and television and radio personality – and a true believer in the happiness-inspiring powers of capitalism.

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Bank of Canada bondNina from Etobicoke, Ontario writes:

As a senior and a widow since 1980, I had invested in mutual funds, stock (Potash for one) and a GIC or two.  Not much.

I have lost much and am very frugal with a Honda Accord 1990 (224,000 kilometers) and only consume what I  need and can afford.

So, is it rude of me to ask what the best investments would be, beside slipping this under the mattress. I think you are great and listen to you religiously.

Thank you, Lou

Hi Nina,

Thanks for your support it, is very much appreciated.

As a senior I would say that you should have the majority of your assets in Government of Canada Bonds. When we are no longer earning income from employment we have to make capital preservation the top priority in our financial plan.

What capital you have should be used to generate additional income to supplement your pension income.

You could look at other fixed income vehicles such as provincial bonds, corporate bonds, preferred shares, and dividend paying common stocks but as the yield goes up so does the risk.

Sorry I can’t give you more direction in the area of stocks but its my firm belief that the only senior who should be buying common stock is Warren Buffett or a very seasoned trader.

Happy Capitalism!

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