Salient to Investors:

George Schneider writes:

  • The trend away from diversification of portfolios into just a few stocks plus Americans’ growing insufficiency in math skills are leading Americans towards dependency on government benefits rather than self-reliance in retirement.  Two-thirds of 4th and 8th graders failed the thermometer math proficiency test in 2013.
  • The average investor retires with $50,000 in assets today and would produce an annual total retirement income of about $24,000 when added to the  average of $20,000 in joint social security, and excluding any private pension. A 30% cut in dividend income on the assets would reduce that retirement income to $22,800, and a 30%-50% average market collapse would probably cause the retiree to liquidate his portfolio, leaving only Social Security income.
  • Diversification keeps most investors from losing unacceptable amounts of capital and dividend income for retirement needs.


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