$10 Million Investor Challenges Advisors Over 4.5% Treasurys vs Stocks
Updated
Updated · MarketWatch · Aug 17
$10 Million Investor Challenges Advisors Over 4.5% Treasurys vs Stocks
2 articles · Updated · MarketWatch · Aug 17
Summary
A 75-year-old investor with more than $10 million questioned why he should stay in equities when U.S. Treasurys yield above 4.5% and offer near risk-free returns.
Two advisers independently told him to remain invested in the market, arguing inflation poses the biggest threat to preserving his portfolio over what could be a decades-long retirement.
The investor said he spends about $450,000 a year and is weighing that income need against the risk of a significant stock-market drawdown.
The exchange highlights a core retirement-planning tension for wealthy older investors: locking in safer bond income now or keeping stock exposure to outpace inflation over time.