How Soon Before Retirement Should You Adjust Your Portfolio?
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In today’s episode of Ready for Retirement episode James covers when to adjust your portfolio as retirement nears—a crucial step for balancing growth and security. If adjustments happen too late, market downturns could delay your plans; if too early, you might miss out on potential growth.The focus is on reallocating stocks to more stable investments like bonds as you approach the time you’ll need to start drawing from your portfolio. Historical data shows that while the stock market grows over the long term, short-term volatility can be risky close to retirement. Timing this transition, often starting about 10 years before needing funds, provides a smoother adjustment and reduces risk.Besides financial factors, psychological comfort with market swings also matters. Striking the right balance helps ensure your retirement funds last while maintaining your peace of mind.Questions answered:1. When should I start adjusting my investment portfolio as I approach retirement?2. How can I balance growth potential with stability in my retirement portfolio to minimize risks and ensure financial security?Submit your request to join James:On the Ready For Retirement podcast: Apply Here)On a Retirement Makeover episode: Apply Here) Timestamps:0:00 - Protect against stock market decline2:22 - Investment fundamentals and market trends6:12 - When will you need the funds?8:06 - Risk capacity10:55 - Consider dividends and interest from bonds14:20 - Use bonds for a specific purpose17:07 - Risk tolerance20:59 - 5-10 years before retirement24:36 - Goal: minimize risk and regret

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