Seeking Alpha

Retirement Advisor: Surviving And Thriving (Podcast)

by: SA For FAs
SA For FAs
Senior Editor, FA Content

The dollar's value has not held up well during the past century, and its prospects in the coming century could be dimmer. In contrast, stocks' long-term returns have been stellar.

So, why should investors, in general, and near-retirees, in particular, make a large commitment to cash, as I have been wanting to recommend?

A Warren Buffett quote pithily penetrates this core requirement of investing: "In order to succeed, you must first survive."

Among the non-survivors are lots of investors who despised the wasted opportunity of a cash drag.

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It takes $26 to buy what one dollar could buy in 1913. So, why should retirees want dollars, which may fare even worse in the coming decades?

This podcast (5:38) argues that disparaging cash as trash misses a paradox that Warren Buffett penetratingly expressed, that "in order to succeed, you must first survive." With enough cash not just to meet their expenses but to re-risk their portfolios with new stock investments - retirees can both survive and thrive.