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John Lewis, founder and president of Gerard Wealth Management, on what boomers should have in their portfolios to be prepared for retirement.
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You -- accounted for 26%.
Of the total population and every day for the next nineteen years about 101000 -- gonna turn 65.
If you're one of those millions our next guest says he has a great portfolio suggestion for -- John Lewis.
It's a founder and president of the market wealth management and he joins us now -- John.
John -- -- famously said that you should have in your portfolio.
You're bond holdings should equal -- I'm guessing that if you're over fifty -- -- have -- 50% of your holdings in bonds correct.
Well or fixed income.
It it really depends on your own tolerance -- some people prefer CDs because of the insurance that's provided by the federal.
For the treasury.
It just depends on what your comfort level is that yes that's my that's what I subscribe to.
John what the biggest concern for investors in this category right now is that is it that they may not have enough money.
Well I think that most people like.
Most people but especially this category.
Has a real concern about capital preservation.
And -- proposal that I have the what I wrote about in my column.
On MarketWatch.
Actually.
Is consistent with that I get break down for us.
All right why propose for most people do have critical mass and by critical mass I mean that they have.
There are enough money to live off of their interest and dividends alone.
So I would say that for those people.
A 30%.
Allocation to dividend stocks like -- -- Verizon AT&T.
Some master limited partnerships like plains all American and Energy Transfer Partners.
Those types of equities are appropriate and I would put about 30% and -- -- mean if you're gonna have an equity exposure because you want.
To protect against inflation.
You might as -- get paid for with high dividend stocks you know -- sharply at do we -- just put back that that -- -- there because there's a slice that's about 10%.
Of your portfolio that -- in reits you believe that an investment are reits.
Is doable right now that's the Green 10% slice.
Well let's talk about reits in terms of what this really consists up we're talking about I'm talking about mortgage real estate investment trusts.
Now these.
Our special category of reits.
They're commonly known as -- eats that stuff throw off.
Yields in the teens.
Now for this kind of an allocation you probably do you -- -- have.
A money manager -- managing your funds because these are rather exotic creatures.
A lot of us are not can particularly concerned about them but they do -- some people because of the high yields so I would have someone do you an advisor that understands these.
Or if an investor actually wants to put in the work.
To understand then they can do so my I have they have portfolio -- co investor dot com that is actually comprised of our composed of 40% in -- Now let's talk about credit for a second because you like individual corporate bonds and -- -- a lot of people.
Tend towards treasuries because they're afraid of the risk in corporate bronze obviously there's been a lot of return in treasury.
-- counsel people on this front to go for corporate bonds which they look for.
Well you cannot you can buy treasuries if you want -- -- gonna lose.
Inflation right now in March was two point 7%.
So you're gonna you you're not going to be able to keep up with inflation just going to an all treasury portfolio.
Yes they do have the only printing press that's legal.
But I'd much rather diversify -- -- with at least ten corporate.
Corporate equities -- corporate -- companies.
That attack corporate bonds that can throw off -- anywhere from 3%.
To upwards of seven or 8% and stick it -- still be investment grade OK John thanks so much for joining us -- -- -- appreciate it.
Well another -- -- Amazon this week following target's announcement that they will stop caring that Kindle has a big deal details of today's degree plus.
