The article emphasizes the importance of balancing investment portfolios, particularly for older adults nearing retirement age. While many passive investors focus heavily on ETFs tracking the S&P 500, thereâs a strong argument for incorporating bonds and cash as a safety net against stock market fluctuations. Investors who remain overly invested in stocks may face dire consequences during downturns. Though some have thrived by keeping aggressive allocations into their 60s or 70s, this could be a precarious strategy that leads to lower withdrawal rates and increased risk as market conditions change.
Neglecting the bond and cash portion of a portfolio could be detrimental, especially for investors in their 70s facing stock market volatility.
For older investors, maintaining a heavy stock allocation amidst market unknowables is risky, despite success stories from those who didn't adjust their portfolios.
Collection
[
|
...
]