Is It Time to Sell Some Stocks?

Summary

Ben Carlson and Duncan Hill answer audience questions about energy stocks vs the S&P 500, optimal portfolio allocation for young investors, whether to sacrifice passion for higher pay, adding bonds in retirement, target-date funds versus index funds, and raising dry powder in a euphoric market. They emphasize that personal finance is personal and that the best portfolio is one you can stick with.

• Energy stocks have been volatile but have similar long-term returns to the S&P 500.
• Young investors should choose a portfolio they can stick with, even if it is more conservative.
• Joining a family business for more money is not necessarily selling your soul if the work is tolerable.
• Retirees should consider holding cash or T-bills to avoid selling stocks during downturns.
• Target-date funds are a valid choice for hands-off investors even if not perfectly optimized.
• Raising dry powder requires a pre-defined plan for when to reinvest.