CNBC Task Force: Take 'Ownership' Investment Mentality
John Burns says staying the course is the only smart path to prosperity. Burns, founder and chief investment officer of Burns Advisory Group, joined CNBC's "Power Lunch" to offer his insights into how to play the market today -- and how to prepare for tomorrow.
Burns' further comments are below.
Clients and Concerns
Our clients are successful, high net worth, retired & near-retired, former execs and working class people. For all, their biggest concern is not having enough money in retirement.
If you're going to prosper, you have to embrace the ownership mentality. If in a volatile market you go to cash or bonds, you're no longer in the game.
What To Invest In Right Now
We love large domestic American companies right now. We cut back on smaller companies. Big companies are undervalued right now. We also like emerging markets. And I'm not a big believer in commodities for diversification.
Advice to Those Who Haven't Saved Enough for Retirement
For every $50,000 you want to spend, you need $1 million to make that doable. You can have more income, but it's like spending your whole paycheck. Max out your 401(k) and the matches now.
What Kind of Risk is Best?
The common wisdom is stocks are riskier than bonds. But ownership investment is the only thing that'll let you grow your wealth. If you're not going to work, then your investments have to create income. The real risk is outliving your money, not the risk of the stock market on a day to day basis.