Updated: February 24, 2016
If you’re a retiree, or a near-retiree, you’ve probably been told you should dump—or at least reduce—your stock holdings and focus on fixed-income investments.
It sounds like a smart move, right? After all, CDs, Treasuries and the like protect your principal, while one big downturn can wipe out your stock-market gains.
But going lean on stocks leaves you open to two big risks: that you’ll outlive your savings and miss out on the long-term gains only the stock market can offer.
Consider these numbers from the Society of Actuaries: if you’re a 65-year-old man, you have a 41% chance of living to 85 and 20% odds of hitting 90.… Read more