Video Transcription

Hi. Vince Oldre, Certified Financial Planner. I want to talk to you about another issue that we often find and that’s a question around should you have a mutual fund in your retirement or should you have individual stocks. The argument is that if you have enough money, you’ve now graduated to be able to have stocks instead of mutual funds because you should be able to diversify across many individual stocks.

Now, if you want to do that, you need to make sure you are going to be well diversified with individual stocks, but at the same time, you’re not actually going to be able to diversify as much as you want to. For example, if you want to have international or maybe some currencies or maybe have some large cap, small cap, it’s harder to diversify when you need to get into more sectors than just the US stocks. There’s an argument to say that, yeah, mutual funds, you’ve now graduated from having a mutual fund, but then there’s also an argument saying that it’s pretty hard to fully diversify if you’re going to go into individual stocks.
So, what’s the right answer? Well, there might not be an exact answer for you because it all comes up to what your plan dictates. Your individual plan is going to dictate what you should have within your retirement plan, not this is the right answer or this is the right answer.

The mutual funds can work for certain retirement plans and individual stocks can work for others, but at the end of the day, it might be a combination of both or it might be just one. So, it’s not going to be an answer as far as what we will get out of this video because if we find that you need diversification across international or you need diversification across small cap or large cap and not just buying just US stocks, then that’s why you need to have a combination.

As much as I’m sorry to say that it’s not as easy to pick just mutual funds or stocks of what’s right for you, it’s going to be probably a combination or it’s going to come down to what your retirement plan dictates.

Hopefully we can drown out the noise that’s going on in the industry as far as now you’ve graduated, you should have individual stocks, or now you know you can’t buy individual stocks or that you’re not diversified, hopefully we’ve drowned out that noise so that you can view what’s best for you. What you need to do is create your own retirement plan and your plan will dictate what things you use, the specific investment vehicles for you to use within your own retirement plan.
If you have any questions as far as what you should use, please feel free to reach out to us and we’re more than happy to sit down with you and help create your own retirement plan. If not, there’s plenty of resources on our website that you can use as well. Until next time, we’re looking forward to speaking to you then.

Should you Own Mutual Funds or Indv stocks for Retirement?
4.9 (98.82%) 17 votes

Sign up for our eNewsletter

Welcome! Please input your email address in the box below to begin receiving periodic email newsletters from Assured Retirement Group. Our e-newsletter covers timely financial news and planning strategies you can put to use. You will be able to unsubscribe at any time, and this service is free. Please let us know if you enjoy receiving the email updates and if there are any topics you’d like us to cover.

You have Successfully Subscribed!

Retirement Guide Includes:

Financial Evaluation
Comprehensive financial assessment form.

Pre-Retirement Checklist
Our checklist lets you know exactly what you need and what steps must be taken before you retire.

Financial Inventory Form
Allows you to keep a detailed record of your assets in an organized manner so that your retirement options are clear.

You have Successfully Subscribed!

Schedule An Appointment:

Fill Out This Form To Get Instant Access To My Schedule! Pick A Day That Works Best For You!

You have Successfully Subscribed!

Retirement Guide Includes:

Financial Evaluation
Comprehensive financial assessment form.

Pre-Retirement Checklist
Our checklist lets you know exactly what you need and what steps must be taken before you retire.

Financial Inventory Form
Allows you to keep a detailed record of your assets in an organized manner so that your retirement options are clear.

You have Successfully Subscribed!

WhyWe UseWealthGuard

WhyWe UseWealthGuard

Manage all of your accounts

Take control of your investments

Help protect your retirement

You have Successfully Subscribed!

Why We Use Wealth Guard

Manage all of your accounts

Take control of your investments

Help protect your retirement

You have Successfully Subscribed!

Let Us Help You Prepare For Retirement

Get Instant Access To Our Retirement Video Series

You have Successfully Subscribed!