News | 12.05.18
Maintaining Balance in Retirement Accounts
A retirement account has to shift its balance as one ages. As retirement draws closer, experts suggest loading up on bonds and extremely stable investments like money market funds. Bonds don’t earn as much as stocks do, generally, and they can certainly decline as investments when markets slump. But they won’t plunge nearly as much as stocks — and sometimes they even go up when stocks go down. Staying in the stock market very late in the game is smart only if you’re wealthy enough, or, say, have the stability of a pension or the expectation of an inheritance, and "the market is just a game for you," says Tom Fredrickson, a certified financial planner in Brooklyn. Many planners recommend target date funds to relieve customers of the burden of rebalancing.
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