Retiring with no plan for income
Retirement is a gradual process that involves some planning. Ideally, people begin to transition their portfolio into retirement mode years before they actually retire.
Throughout their career, workers have lots of time to save money and wisely invest in a range of assets. As retirement nears, the mix of investments needs to change, moving away from growth in accumulation toward a distribution and preservation stage.
Investors should rebalance their portfolio to make sure their risk tolerance matches their age and timeline to retirement. That usually means scaling back equity exposure and increasing the amount of bonds in the portfolio.