This could be a real problem for retirees, as it’s common practice for investment advisors at major brokerage firms to put their more conservative investors in utilities. A seasoned veteran once told me that no broker ever got sued for putting clients’ money into utilities. I wonder how many brokers and investment advisors have noticed the shift happening in utilities with higher rates.
In light of rising interest rates, we have refined our criteria for selecting solid and safe investments for the Money Forever portfolio. Unfortunately, not everyone was has caught on. Take a look at your portfolio to see whether you need to trim down your utilities exposure. Should the market crash, I’d rather be holding a utility than General Motors, but at the same time, if interest rates keep going up utilities will feel the pain.
I discussed this issue—as well as others facing retirees—in a very recent and timely online event called America’s Broken Promise: Strategies for a Retirement Worth Living. This free event’s all-star cast explains the unique challenges retirees face today—challenges far different from what we were raised to expect.
The presentation is hosted by my colleague, David Galland of Casey Research, and features John Stossel, formerly on ABC’s 20/20 and now with Fox Business Network, David Walker, former Comptroller General of the United States, Jeff White, President of American Financial Group, and me of course.
This is the one event you must see to ensure you retire on your own terms. Use this link to find out more and to sign-up.