Who says there are no second chances? For seniors and boomers who resisted the urge to go to cash during the summer market swoon, good for you! You made the right decision by not panicking, but it isn't too late to sell. In fact, if an older client came to me today and wanted to sell stocks to raise cash, I would find it harder to argue against that strategy.
The desire to replace your active career income with passive income in retirement is not only compelling, it's the No. 1 reason why people invest in the first place.
With the Federal Reserve pegging short-term interest rates at near zero and with historically low interest rates paid out by investment-grade fixed-income securities, seniors and boomers have piled into dividend-paying stocks. Aside from many of these dividend-paying stocks now trading more like high P/E growth stocks than value stocks, this has caused a higher degree of volatility in stocks and a higher degree of angst among these generational cohorts.