FOR years, the trope in retirement planning was to reduce the stock holdings in your portfolio and add bonds as you neared or entered retirement. That advice is being challenged.
It goes against the grain to suggest that a successful retirement portfolio might need more stocks. Doesn't that mean more market risk? It does, but weighed against inflation and bond market risk, it could mean the difference in having enough money in one's 80s or 90s or older.
The key to this relatively new thinking is that stocks can deliver better inflation-adjusted returns than bonds most of the time and they may offer sustainable retirement financing over several decades. If you know how much risk you can take, you...
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