Here’s why retirees shouldn’t fully ditch stocks
From CNBC: 2025-04-16 13:42:00
Retirees may feel moving investments to cash and bonds protects their nest egg, but experts say stocks are necessary for long-term growth. Longevity risk is the biggest financial danger, with life spans increasing. Shifting out of stocks during volatility can insulate portfolios, but dialing back too much poses risks of outliving savings.
Experts recommend a stock allocation based on age, subtracting from 110 or 120. Diversification is key, with a focus on total market index funds. Bucketing assets into separate buckets of bonds and cash can help retirees weather stock market downturns in early retirement. Every investor is different, with varying risk abilities and risk appetites.