Go Old School: Invest

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Go Old School: InvestFinancial gurus also say there’s nothing quite like the classics when you’re trying to build up, and preserve, income in retirement.“The reality is that retirement investing should be treated the same as any other kind of investing: your goal is to achieve the highest return with the least risk of loss,” says Lee Tobey, fund manager at Hedgewise, Inc.“Prioritizing dividends and interest at the expense of total return doesn’t make sense when you look at the facts,” he says.Tobey continues, “The best strategy is to prioritize diversification and risk management above all. You want a mix of assets in your portfolio that can weather any economic environment while still generating expected returns of 5 percent or above. If you run an analysis on the last 70 years or so, this mix is:

• 60 percent government bonds
• 30 percent equities
• 5 percent in real estate
• 5 percent in gold”

“There is literally no other mix of assets that has performed better on a risk­ adjusted basis,” concludes Tobey.