In retirement, your equities exposure is the make-or-break factor. Many financial advisors now recommend that retirees keep 40%-80% of their investments in stocks to generate income and mitigate inflation and longevity risks:
The allocation should consider account age, risk tolerance, income, assets, spending needs, and taxes:
Inflation and longevity risks require portfolio growth
Equities can provide long-term growth needed to address inflation and longevity risks:
Stock market exposure should not be fixed in retirement
If your expenses increase, you might need a slightly more aggressive equity allocation:
Investing for 80 and beyond
Even at 80, you might want equities at a 20%-40% range:
Target-date funds offer a simpler solution
Target-date funds can be a good option as they gradually reduce equity exposure:
