The Oxford Club Details How Much You Should Have in Stocks

Throughout the year, the Oxford Club puts on many private wealth management seminars throughout the country. It is during these seminars that many “loaded” questions are asked, including variations of this one:

“Once I reach retirement, how much of my money should be devoted to stocks?”

The answer that many at the Oxford Club always gives is that “it depends.” A person’s age, their health, their monthly overhead, and the size of their portfolio all play a large role in how much money they should have invested in stocks.

Moreover, when the Oxford Club received this answer, they have become rather adept at changing the question. Rather than how much someone has in stocks, the question they should be asking themselves is how much a month do you have in overhead? After you answer that question, you should allocate enough money in low-risk bonds and cash to finance your monthly overhead for a five-year period. For example, if you wish to have a $30,000 per year retirement, you should set aside a reserve of $150,000.

Why is this so? Because it allows for a bear market in the stock exchange. For example, the average bear market will last about 15 months, and the recovery will usually take another 2 years. That would be about three years for a recovery for your stocks. However, some bear markets are more severe, so this is why you should allow for a five-year financial reserve. Thus, while your stocks are in this bear market, you are living off of your reserve. This way, you avoid cashing in your stocks for a low amount and then once the market rebounds – becoming bull once again – then you can sell your stocks and still maintain your personal wealth.

The Oxford Club

It is practical, feasible financial advise from the Oxford Club that has made them so famous. Simply put, these guys know how to help you provide for your financial future.

Founded in 1989, the Oxford Club has a unique and time-tested approach to stock market and investment analysis that consistently places them ahead of the market. Many investors have seen consistent returns simply by adhering to their principles.

Learn more about the Oxford Club here: https://www.crunchbase.com/organization/the-oxford-club