Retiring with no plan for income
As you get close to retirement, the asset allocation of your portfolio should shift to a more conservative stance. Ideally, people begin to transition their portfolio into retirement mode years before they actually retire.
Throughout their career, when they’re in the accumulation stage, workers have lots of time to save money and wisely invest in a range of assets. As retirement nears, the mix of investments needs to change, moving from capital appreciation toward capital preservation during the distribution phase.
Investors should rebalance their portfolio to make sure their risk tolerance matches their age and timeline to retirement. That usually means scaling back equity exposure and increasing the amount of bonds in the portfolio. Of course, some exposure to stocks is warranted since retirement can last 30 or more years.