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URL:  https://boards.fool.com/the-phrase-quotreduce-riskquot-relating-to-34833939.aspx

Subject:  Re: How and When to Reduce Risk as Retirement Ne Date:  5/15/2021  9:19 PM
Author:  GWPotter Number:  102765 of 103788

The phrase "reduce risk" relating to retirement has an inherent danger lots of people ignore or don't grasp. A better thought, in my view, is to swap or change risk.

Generally the reduce risk proponents are saying reduce equities and get bonds. Many people today are retiring with 30 plus years of retirement ahead. Even moderate inflation -- the kind the Fed wants of say 2% to 3% will be significant over long time frames. 30 years at 2.5% will raise the price of hamburger from $4.69 a pound to $9.84 - and similarly for most other stuff.

Unless a person has some combination of more money than they will spend or a short life expectancy, a significant portion of one's portfolio needs to be in equities. Personally we use the S&P500 - other folks have other choices.
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