The Million-Dollar Retirement Advantage: Financial Advisors' Daily Digest

by: SA Gil Weinreich

Summary

Eric Nelson says you can invest in stocks and avoid a lost decade at the same time.

Why wouldn't advisors avail themselves of Twitter to keep in touch with customers and let them get to know you?

Smead Capital Management has singing group The Shirelles explain how to invest and not invest in today’s stock market.

There are those who say investors need stocks for the long run, and those who warn about the risk of getting into stocks at a time of personal financial vulnerability (i.e., on the cusp of retirement) and therefore take more conservative approaches.

Comes along Servo Wealth Management's Eric Nelson with intriguing advice on how to prevent a "lost decade" from destroying your retirement. In other words, he belongs to the pro-stocks first camp but he's not worried about the risk that preoccupies the second camp.

He illustrates his approach by comparing two hypothetical investors who, interestingly enough, have the same starting point, same goals and same general asset allocation. So you'd think their results would be the same.

But no: one of them ends up with an ending portfolio value of $349,744 and the other with $1,399,286. One little portfolio tweak accounts for this vast difference. Eric Nelson is pro-stocks, to be sure; but his definition of investing in stocks differs subtly yet significantly from the conventional one.

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