This 72-year-old’s portfolio is 97% in stocks. Is she taking on too much risk as retirement nears?

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This 72-year-old’s portfolio is 97% in stocks. Is she taking on too much risk as retirement nears? GlobeMoney

After a long and successful career, Ellen has retired from consulting and is winding down her corporation. She is 72, single and well off.

She is concerned about having enough money to “live in a first-rate senior residence and eventually a first-rate nursing home if necessary,” Ellen writes. Her retirement spending target is $65,000 a year after tax, although her actual spending is lower. Ellen’s lifestyle spending is $40,500 a year, plus $10,000 a year for travel. Her only savings is the maximum annual contribution to her tax-free savings account .

Still, the plan as it stands has considerable risk, Mr. Ardrey says. Of the 97 per cent in stocks, Ellen has 6 per cent in one U.S. holding. The remaining 93 per cent is in Canadian stocks. Seventy per cent of her holdings is invested in just four stocks.

 

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globemoney I hope she gets her travelling done in he next 9 months. Most environmentalists that support carbon taxes are also calling for a non-essential air travel ban! Vote wisely next election. Carbon taxes are just the beginning...

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