Investing in retirement: What’s age got to do with it?

Does this sound familiar?

Conventional wisdom may tell you to preserve your assets by moving most of your nest egg into more conservative investments as you approach retirement. But where is it written that once you get close to retirement age, you should dump your equity investments? Age isn't the only factor to consider when you're choosing investments for your retirement portfolio. When you'll need to tap your investments is a more important indicator of how your portfolio should be constructed.

Risk tolerance doesn't retire when you do

The amount of risk you feel comfortable taking won't necessarily change just because you stop working. Unless you're concerned that your portfolio is exposed to too much risk, you may not want to make any major changes to your investment mix.

Get the return you need

Your money won't last throughout retirement if your investments aren't producing returns that match your needs. If you rely only on fixed-income and cash equivalent investments, you may outlive your resources. Leaving a portion of your portfolio in a well diversified mix of equity investments may help provide the growth you need.

Best of both worlds

Consider putting money for living expenses for the next few years into short-term investments, while still holding a portion of your portfolio in equities to benefit from their potential for higher returns.

Your Financial Advisor can help you design a retirement portfolio that makes the most of the assets you've accumulated and positions your portfolio for continuing growth.

Diversification does not ensure a profit or protect against loss in a declining market.

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