Have you hit your retirement savings goal ahead of schedule? If so, it may be time to protect that nest egg by unloading some stocks.
The idea is to reduce investment risk and preserve savings.
Stocks are an important building block in a retirement portfolio: They yield higher returns, on average, than «safer» types of investments. But those returns come with more risk — namely, the possibility of a big loss. Young investors have ample time to claw back losses, but near-retirees don't.
For older investors, stocks are «Three Mile Island and Chernobyl-level risky, and you do want to cut back on them,» William Bernstein, an investment advisor and author of «Rational Expectations: Asset Allocation for Investing Adults, has said.
It should be
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