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Retirement Requires a Shift in Thinking

November 8, 2019

From the Kiplinger website

The risk-reward equation changes when you retire. It’s no longer about growing your wealth: It’s about protecting what you’ve got. So get ready to flip your mental switch from accumulation mode to preservation.

For most of your investing life, you’ve probably been encouraged to build a portfolio that balances risk and return — achieving the highest returns possible based on your personal tolerance for risk.

For most people, that means living with a certain amount of volatility in exchange for growing a comfortable nest egg for their retirement years. You can lose money taking on too much risk, of course, but you won’t gain much ground being too risk-averse. So, a larger investment in the stock market (60%, 70% or more) would be a must for those looking to help grow their wealth over the long term.

In retirement, though, things are different, and a shift in thinking is required.

From → Finance

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