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Your age helps determine the level of risk you take in your investments, among other factors.
Retirement experts explain how and when you need toadjust your retirement portfolios risk levelbefore retirement.
Take a certain amount each year and contribute it to this account.
This largely removes the market-timing risk as you withdraw funds over a multi-year period, once your retirement begins.
Furthermore, this reduces your exposure to sequence-of-return risk early in retirement.
Here, you generally have a higher risk tolerance due to a longer time horizon.
Emphasize equity-heavy investments (stocks) for potential higher returns over time.
Consider a mix of domestic and international funds, he said.
As you get closer to retirement age, he said, Start incorporatingmore conservative investmentsto reduce volatility.
For example, at 45 aim for 45% fixed income and 55% equities, he said.
This helps reduce volatility while still achieving growth.
Shift towards more conservative investments like bonds and stable dividend-paying stocks, he said.
Considercapital preservation and income generationas primary goals.
However, he did say that some equities are still important for hedging against inflation.
Review and rebalance your portfolio regularly based on your financial goals and risk tolerance, Tigner suggested.
This helps ensure your portfolio aligns with your anticipated retirement income needs and risk capacity.
You also should maintain a diversified portfolio to mitigate risk acrossvarious asset classes and market conditions.
Be careful to pick an advisor who doesnt charge high fees, so you dont fritter away money.
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