As investors approach retirement age, they should hold more bonds and less stock.

Question

Quizplus · Accepted Answer

As investors approach retirement age, they typically have a shorter investment horizon and a greater need for income and capital preservation. Bonds are generally less volatile than stocks and provide a fixed income stream, making them a more suitable investment for retirees. Therefore, it is recommended that investors gradually shift their portfolio allocation towards bonds and away from stocks as they approach retirement age.

As Investors Approach Retirement Age, They Should Hold More Bonds