I attempted to address this question in an earlier thread but I don't think that I presented the question clearly.
If I look at my current retirement savings, which is currently split about 50/50 (stocks & bonds), then project out to my estimated retirement in 8 years; I see that I can make my retirement savings goal with only modest (4%) growth going forward.
Does it make sense to reduce the risk of not making it to my goal (by having exposure to stocks) by putting all of my current savings into CDs and bonds hopefully yielding an average of 4%? Am I missing something? Is there a point when saving for retirement where one should shift to capital preservation mode to reduce the risk of missing a target date for retirement?
Thanks in advance.
If I look at my current retirement savings, which is currently split about 50/50 (stocks & bonds), then project out to my estimated retirement in 8 years; I see that I can make my retirement savings goal with only modest (4%) growth going forward.
Does it make sense to reduce the risk of not making it to my goal (by having exposure to stocks) by putting all of my current savings into CDs and bonds hopefully yielding an average of 4%? Am I missing something? Is there a point when saving for retirement where one should shift to capital preservation mode to reduce the risk of missing a target date for retirement?
Thanks in advance.