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Prioritize Stability: Safeguard Wealth Before Retirement
Investors should consider increasing their allocation in fixed income bonds one to two years prior to retirement to reduce portfolio volatility. This strategy is crucial during significant market downturns, especially if an investor needs to withdraw funds for living expenses. The impact of a 50% market decline can drastically affect long-term financial security, making it essential to build a more stable asset base during crucial pre-retirement years.