Grow savings early, avoid risk later
The asset allocation strategy that may have served you well during the saving and accumulation stage is not necessarily the best one to see you through retirement. Why is this? Early in your career, you have time to endure the potential ups and downs of the financial markets and can take advantage of the historically higher returns stocks provide.
However, when you retire, the higher volatility of stocks can potentially diminish the value of your nest egg precisely at the time when you need to start withdrawing money. Reducing your investment risk at this point in your life may help to preserve your savings for your retirement.
