One of the most common investing questions is: How should my portfolio change as I get older?
The answer isn’t as simple as “buy more bonds.” In this episode, Paul explains why time horizon is a key driver of investment decisions and how investors must balance two important risks throughout their lives: inflation risk and stock market risk. While stocks have historically helped investors outpace inflation over long periods, market volatility can become more consequential as retirement approaches and withdrawals begin.
Paul discusses the historical relationship between stocks and inflation, the role bonds play as a stabilizing force in a portfolio, and the dangers of taking either too much—or too little—investment risk as retirement approaches. He also explores research on retirement portfolio allocations and explains why maintaining meaningful exposure to stocks may still be important even after you stop working.
Whether you’re decades from retirement or preparing to retire soon, understanding how a portfolio evolves over time can help you make more informed investment decisions and avoid common mistakes along the way.
February 16, 2022
Preparing for retirement involves analyzing your assets, income, and expenses, but it also includes knowing your risks and knowing how to relax.
Most investors understand the importance of diversification, but few understand the science behind it. In this episode, Paul explains the academic research
Most people contribute to their 401(k) and hope for the best. But how do you know if you’re actually invested the
What happens when a life insurance policy is sold as a retirement investment strategy? In this episode, we discuss “The Life Insurance
