3 ms·
If you're still invested in something that can lose 50% of its value when you're retired, you should rethink your investments.
by MrMember 7y ago
If you're still invested in something that can lose 50% of its value when you're retired, you should rethink your investments.
- throw0101a 7y agoYou're not wrong, but it's a matter of balancing risk, which is the point of having an allocation towards equities (stocks) and fixed income (bonds). Recoveries have generally take up to 2-3 years, so if you have that much of your portfolio in cash and GICs, you can weather a downturn without having to touch your equities: * https://www.myownadvisor.ca/cash-wedge-opening-investment-taps/ https://www.myownadvisor.ca/cash-wedge-opening-investment-ta... One suggestion, which is not popular, is to take a portion of your retirement savings and buy an annuity: enough to cover your day-to-day expenses. This way, regardless of what your invested portfolio is doing, food and shelter (rent/property taxes) are covered. You would consider the annuity as part of your fixed-income ("bond") portion of your portfolio.