As stated yesterady, in one of the recent issues of Money Magazine, a special insert was placed in the middle of the magazine. It was titled Tapping Your Nest Egg and dealt with the keys to making sure your money lasts as long as you do. I noted that over the next few days, I'd be sharing some of the key thoughts from this insert.
In today's post, we'll cover the fact that financial flexibility declines the closer you get to retirement. Here's Money's comment:
"While you're building assets (i.e. when you're younger and earning a living through a job), you have wiggle room; not so when you're retired."
Basically, the point is: The closer you are to retirement, the more conservative you need to be with your investments. This is why most financial planners recommend a shifting from stocks to income-producing assets (bonds, income-focused mutual funds) as you get older.
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