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Should Seniors Invest in Stocks?

When it comes to the stock market, we know there is always a chance of risk. A dedicated broker will go over which stocks, in theory, will have a higher risk than others and the choices you should make to have the best return.

For older adults, though, timing may be a concern. It may be a priority to make as much money as possible in a small amount of time or a focus could be leaving money to heirs.

No matter the reason, stocks can be a great option for older adults.

Advantages of Investing in Stocks

When it comes to stocks, many have a better return than bonds. This means that you could make more money in a shorter amount of time compared to leaving your funds in bonds. Another strategy could be investing some money in stocks and some in bonds. This way, you’re not taking a gamble with all your money. You would also have the opportunity to evaluate the stock market's current outlook and decide whether it would be best to pull out of some stocks or transfer more out of bonds.

Another advantage is the opportunity to take advantage of dividends. If you own a company's stock that is so successful that they are reinvesting in their own business, you may receive a dividend. Those are usually paid out once a quarter and can provide extra income that you physically did not have to do anything to earn.

Disadvantages of Investing in Stocks

As previously mentioned, there is always a risk when investing in stocks. There is never a guarantee that you will make money and a crash could happen with little notice. If you are solely relying on your stocks to keep you financially afloat during retirement, you may not be able to determine a true “retirement” date as the market fluctuates.

Additionally, if you feel your broker isn’t being truthful, you could not only be losing your money but not be able to retire at all.

When it comes to unlawful brokers, the attorneys at Weltz Law is here for you. Older adults, or any investor for that matter, can not afford to have their money mismanaged. Reach out to our team for a free consultation to see what our legal team can do to keep your money where it belongs.