While most investors entering their 50s and 60s look to lessen risk in their portfolio as they inch closer to the goal of retirement, those not looking to leave the working world may have more options to keep their wealth expanding.
It's no secret many people are staying in the workforce longer — last year Pew Research numbers showed nearly nine million Americans ages 65 and older reported being employed full- or part-time, compared to just about four million people at the start of the century. Many of these people are doing so not because they haven't saved for retirement, but still are enjoying their careers.
That gives these people more options — at least to an extent, experts agree.
"Certainly older workers choosing to remain in the workforce can — and should — have more aggressive portfolios than those who have chosen to retire," said Robert Johnson, resident of The American College of Financial Services. "But, in my opinion, that aggressive portfolio should not be manifested by more exotic holdings. The older worker continuing to work can afford to have a more aggressive asset allocation — a higher percentage of stocks and a lower percentage of bonds."
Johnson said most notably, do-it-yourself investors should not be experimenting with options and futures — as they are simply a zero sum game — but should stick in the stock market.
"The stock market is a positive sum game over time — that is, wealth is created in the aggregate," he added.