Nov 9, 2007

Investors risks

This turn of events is most difficult for those investors near or
in retirement. These older investors are traditionally most riskaverse—
and have reason to be. But they will be faced with the
choice of a lower standard of living or taking more risk.
Older Americans also have to face the fact that they are expected
to live a lot longer than their parents. Because of that,
those near retirement and even those already retired will have to
keep a much bigger portion of stocks in their portfolios than their
parents would have. As we will see, this adds risk

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