Retirees: Is Now the Time to Pull Money Out of S&P 500 Index Funds?
The S&P 500 has a lot of exposure to tech these days, and that can make it a whole lot riskier than normal.
Retirees: Is Now the Time to Pull Money Out of S&P 500 Index Funds?
Overview
If you're in or near retirement, a top investing priority is likely going to be preserving the capital you've built up over the years. It's a time to scale back some risk and focus on stability and dividend income.
While investing in index funds that track the S&P 500 have performed well over the long term, seasoned investors also know that it can take several years to recover from a crash, and that no downturn is the same. That unpredictability could make it risky to invest in the index, despite its long-term stability, because the reality is, you may not have the luxury of just waiting around for it to recover from a downturn, should one take place. And currently, the S&P 500 is around record highs.
Details
Could moving money out of S&P 500 index funds be a good move for retirees to make right now?
Source
Originally published at www.fool.com.
