Today on MYM360: Should You Go Conservative With Your Investments in Retirement?
I got a question from a listener and she wanted to know if she should put her investments in more conservative things like bonds since she was getting close to retirement. She goes on to say that she has heard that you should do that to protect them and to have some money coming in from dividends.
Well Suzanne as with most things there is no one right answer because everyone’s situation is different. And, you’re right. That used to be the thinking to let your investments grow up until retirement and then turn in your stocks for bonds or other conservative investments. But things are a little different today. Namely people are living longer and conservative investments that don’t outpace taxes and inflation make it difficult to sustain your standard of living over the long haul.
In general, consider putting a portion of your retirement savings in conservative investments so that you can take care of your expenses for a few years so you won’t have to tap into your money when the market is down. But allow the remainder of your money to continue to grow. Life expectancies can be 20 or more years after retirement so it’s important to for some of your portfolio to continue to grow so you can help alleviate the risk of running out of money.
I hope that helps. Got a burning question or something you want to learn more about? Send it to me at firstname.lastname@example.org
And that’s it for today. Thanks for listening and as always remember that minding your money really is the path to a richer life!