Retirement & Financial Planning Report

Conventional wisdom holds that you should be shifting your investment portfolio from stocks to bonds as you near or begin retirement. Bonds won’t lose as much as stocks, in a bad year, so they’re safer. In addition, they provide more current income. However, as retirees become long-term investors, this tactic may not make sense. Officially, the average life expectancy is now 80 for men and 84 for women; many people can expect to live into their late 80s, 90s, or even longer.

Thus, if you retire at 60 you may realistically have to anticipate a 30-year retirement. What’s more, you shouldn’t plan on spending down all your retirement money in 30 years. Instead, your goal should be to build a perpetual fund and not deplete your assets. That way, even if you live to 95 or 100 or longer, going decades without a paycheck, you’ll still have a portfolio that can provide you with a comfortable lifestyle.