In my book The Financial Navigator: Managing your Success, I wrote that when something is working for you, why would you change it? Successful people don’t change what works for them, so why should you?
I was recently reading a great book written by Charles D. Ellis titled Winning the Loser’s Game: Timeless Strategies for Successful Investing. What I found on page 112 was exactly what I’ve been teaching for years.
To quote from the book, “Don’t change your investments just because you have come to a different age – or have retired. If you can afford fine paintings, you wouldn’t change the ones you love most simply because you had reached retirement or had celebrated your 70th or 80th birthday. It’s the same with investments.”
Now here’s a quote from page 142 of my book, “Rich people don’t abandon what works for them and neither should you. Wealth is normally created over time. In some cases, it’s created over generations. The basic strategies of wealth creation are not changed just because someone reaches age 65.”
Traditional investment “wisdom” tells us that when you’re age 65 you should have 35% of your money invested in equities and 65% in bonds. I say that if you have enough money coming in from rent and dividends to support your lifestyle, who cares how old you are.