Investors in the sustain phase face new challenges.
Portfolios will likely need greater exposure to ‘risk assets’ such as stocks and higher yielding bonds to meet return objectives, in our view.
We believe understanding and managing those risks is key to finding the right balance between preservation and growth.
Balancing ‘Growth’ and ‘Preservation’ Pre-Retirement
The ten years leading up to retirement, what we call the ‘Sustain Phase’, can be scary with questions such as:
Will I have saved enough to fund my retirement?
How can I mitigate the risk that my savings will see a significant decline just before I retire?