As retirement approaches, retirees should reassess their investment portfolios to reduce stock market exposure due to its volatility. While bonds provide stability and income, it’s important not to eliminate stocks entirely, as they offer growth potential necessary for sustainable withdrawals. The article discusses a Reddit user's strategy to shift towards a 60/40 bond-stock allocation, suggesting that maintaining some equities in retirement is wise to ensure sufficient growth and income generation over time. Advisors can assist in evaluating such transitions for retirement security.
Bonds are generally a far more stable asset than stocks. For this reason, they're commonly regarded as a suitable asset to hold in retirement.
Once you're on the cusp of retirement, it's important to assess your investment portfolio and make changes as necessary.
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