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As someone with a 30th birthday rapidly (too rapidly) approaching, I’ve started to find myself slipping into a few “back in my day” sorts of discussions. You know the type: remember when you could get a bag of lollies for $1, this street used to have a speed limit of 100, how good was MySpace, rabble rabble rabble, etc.
But while change is hard, with age comes wisdom, and what may have seemed exciting when we were young can appear scary or risky as we get older, a perspective that also applies to investing (flawless segue).
If you’re contemplating retirement in the not-too-distant future, it’s important to make sure your finances are in order.Credit: Michael Howard
Common wisdom among investment professionals is that the younger you are, the riskier you can afford your investments to be. New workers with low super balances will often crank their investment allocations to riskier high-growth options, as they have a longer time span to ride out the highs and lows of the market.
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What’s the problem?
However, once you approach retirement, perspectives tend to shift. You’re older now, with less life ahead of you (sorry), so your investments need to be more sound and less sexy. However, it’s also a time of life when many people have more money than ever before, so allocating it properly can be daunting.
What you can do about it
If you’re in or nearing retirement, and wondering how to allocate your investments, read on:
