"If Bogle were alive today, he would be advising his Bogleheads to shift from an aggressive risk strategy to one that preserves their accumulated wealth. Bogle would caution against chasing higher returns through risky investments for anyone nearing retirement, especially after a period of strong market performance. Bogle would often remark that jeopardizing your current financial security wouldn't be worth trying to find that "great" retirement."
"Bogle might have suggested that as you near retirement, it would be worth shifting a portfolio from 70% stocks and 30% bonds to one that is closer to 60/40 or even a 50/50 mix. Conservative Asset Allocation Another strong piece of advice Bogle was well-known for was to hold a percentage of bonds roughly equal to your age. Bogle's thinking was that this was an easy and almost automatic way to reduce your risk over time."
Prioritize preservation of accumulated wealth over pursuing high-return, high-risk strategies when approaching retirement. Shift asset allocation toward greater bond exposure, moving from aggressive mixes (for example, 70% stocks / 30% bonds) to more conservative mixes (60/40 or 50/50) to reduce volatility. Hold a percentage of bonds roughly equal to age as a simple, automatic way to lower portfolio risk over time. Avoid chasing higher returns through risky investments, especially after periods of strong market performance. Use bonds as stable income-generating assets and favor low-cost, diversified investments such as index funds and ETFs for retirement security.
Read at 24/7 Wall St.
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