Preserving your portfolio
Baby boomers nearing retirement need to start shifting their investing gears
And at the end of the day, isn't that the goal for aging boomers--to find a way to still accumulate money to pay for their longer life spans but to do so while preserving what they have already have?
BEGTAB^
Adjusting your mix
As you age, there is less time to make up for losses in your portfolio. That's why investors should consider increasing their stake in fixed-income securities and gradually reducing their equity holdings as they get older. There are many asset allocation strategies to undertake, but here is one suggested allocation:
In your 30s - 20 pct. bonds, 80 pct. stocks
In your 40s - 40 pct. bonds, 60 pct. stocks
In your 50s - 50 pct. bonds, 50 pct. stocks
In retirement 75 pct. Bonds, 20 pct. Stocks, 5 pct. cash
Source: Vanguard
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