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MONEY MATTERS

Betting on a Life Cycle strategy

Such an investment approach rests on making some critical assumptions and avoiding some major risks.

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A major flaw of Life Cycle investments is that if the investor experiences an equity bear market early on, when equity exposure is at the highest, it will wreak havoc on the end result at retirement.

AS WE get older and inch closer to our retirement age, we intuitively understand that we are supposed to take less risk in our investments, shifting the focus from capital gains to income generation with lower volatility.

This sensible view has launched the idea of "target retirement date