How to Manage Your Investment Risk as You Get Closer to Retirement in 2027

Yahoo Finance ·

If you're planning to retire in 2027, it's time to start thinking about what you'll do with your newfound free time and what your expenses might look like. It's also time to start thinking less about maximizing portfolio returns and more about protecting the nest egg you've worked so hard to build. You don't want to risk having your retirement savings run out on you in your lifetime. And part of that means managing your investment risk. Here's how. Stocks have historically delivered strong long-term returns. But they also come with short-term volatility. If you're at a stage of life when you're regularly withdrawing from your IRA or 401(k), you could run into serious trouble if the stock market tanks and you need your portfolio for income. That's why now's the time to gradually scale back on stocks and shift more of your assets into bonds.

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