“It’s not as simple as simply trading a portfolio of growth stocks for dividend stocks upon reaching retirement,” [Rogovy] said. “Rather, we gradually shift the portfolio’s focus as retirement approaches.”
“If you have a long-term horizon, don’t stress yourself out by looking at the number every single day,” Asher Rogovy, the chief investment officer at Magnifina, said. “Over the long term, investors are more affected by compound returns than short-term volatility.”
“Restaurant spending provides an early view into consumer confidence because it’s one of the first expenses people cut when they’re worried about finances,” Rogovy said.
“Essentially, the portfolio is collateral to borrow funds for investing in excess of the portfolio’s total cash value. For example, an investor may gain 150% exposure to the stock market by using margin,” says Rogovy.
“The best-known investors built their fortunes over decades with careful and deliberate research, analysis and stock selection,” Rogovy said.
“Run the numbers yourself. The financial industry struggles with data integrity, and I’ve found plenty of errors in stock screeners, financial-data services, and spreadsheet templates.”
“A lot of beginner investors approach stock picking from the perspective of finding an investment that won’t lose money,” Rogovy said. “While this goal is certainly important, a better approach is to find investments that will provide the best return given the risk. Space in your portfolio is a finite resource, so it’s best not to waste it on average stocks.”
If your employer offers a 401(k) match, make sure you contribute enough to get the full match. Rogovy explained, “This is free money and is almost always more impactful than any other retirement investing decision.”
“Large institutional investors, managing billions in funds, are limited to around 10-15% of tradable stocks because of the sheer size of their portfolios. They simply can’t invest in smaller companies without moving the market or taking on significant risks.”
Asher Rogovy, chief investment officer of the New York City-based investment management firm, Magnifina, stresses that stock-based compensation can be extremely lucrative, but tends to create large tax liabilities.
