A common mistake among retirees is being overly conservative with investments, which increases the risk of running out of money before the end of retirement. Financial advisors now recommend maintaining an equity exposure of 40% to 80% of the portfolio, compared to the traditional rule of limiting stocks to a maximum of 30%. More than 11,200 Americans turn 65 every day, or over 4.1 million per year from 2024 through 2027, according to the Retirement Income Institute. Experts advise reviewing allocations at least once a year, taking into account market conditions and financial circumstances. Target-date funds offer a simpler solution for automatically adjusting equity exposure as retirement progresses.
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