Skip to main content
No. of Recommendations: 13
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.
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.