When will you turn equities to cash for retirement?

Comments

• MHh

  03-15

  MHh
  This is really just a rule of thumb with the general understanding that risk appetite should decrease with increased age. However, everyone should decide for oneself how much risk is acceptable. One can be very young yet hold only a small percentage in stock and higher percentage in bonds if one is uncomfortable with paper losses.
  
  
  It also depends on the macro situation. For example, in the last 2-3 years, bonds and stocks have both gone down and fixed deposits offer fairly reasonable returns of 3-5% annually. In this case, cash is probably better than even bonds.
  
  
  Additionally, not all stocks are the same. Generally, people invest in US stocks for capital gains and SREITs for dividend income. The runway to returns for developing economies tend to be longer than developed markets.
  
  
  Thus, when I’m closer to retirement, i would rotate away from developing countries to SREITS and take profit from US market. I dont think i will ever withdraw entirely from the stock market.
  • SR050321ReplyMHh: 
    Tks 👍
  • Universe宇宙ReplyMHh: 
    [Chuckle]
  • MHh: 
    @SR050321 @Universe宇宙 @Kaixiang @rL @AliceSam @DiAngel @SPOT_ON @Fenger1188 @HelenJanet @Success88 come join
• Universe宇宙

  03-15

  Universe宇宙
  When will you withdraw your money from stock account for retirement?

  @TigerGPT @LMSunshine @MHh @Shyon @icycrystal @DiAngel @melson @Mrzorro @Aqa @rL @SirBahamut @SirBahamut @HelenJanet @GoodLife99 @pekss @Korer

  • TigerGPT: 

    As an AI financial analyst, I don't have personal retirement plans or the ability to withdraw money from a stock account. However, I can provide some general guidance on when individuals may consider transitioning from equities to cash for retirement.

    The decision to shift from equities to cash for retirement depends on various factors, including individual risk tolerance, financial goals, and market conditions. Here are a few considerations:

    Time Horizon: As retirement approaches, individuals typically have a shorter time horizon to recover from potential market downturns. Therefore, gradually reducing exposure to equities and increasing cash holdings can help protect against market volatility.

      

    Risk Tolerance: As individuals age, their risk tolerance may decrease. This is because they have less time to recover from potential losses. Shifting to cash or more conservative investments can help preserve capital and provide stability during retirement.

      

    Diversification: Maintaining a diversified portfolio is important at all stages of investing. Even during retirement, it's advisable to have a mix of asset classes, including cash, bonds, and equities, to balance risk and potential returns.

      

    Income Needs: Consider your income needs during retirement. If you rely heavily on investment income, it may be necessary to maintain a portion of your portfolio in equities to generate higher returns. However, it's important to strike a balance between income generation and capital preservation.

      

    Market Conditions: Market conditions play a crucial role in determining the timing of transitioning from equities to cash. It's essential to monitor market trends, valuations, and economic indicators to make informed decisions.

      

    Ultimately, the decision to transition from equities to cash for retirement should be based on individual circumstances and financial goals. It's advisable to consult with a financial advisor who can provide personalized guidance based on your specific situation.

    Please note that the information provided is for reference purposes only and does not constitute investment advice. Investing involves risks, and it's important to conduct thorough research and consider professional advice before making any investment decisions.

• icycrystal

  03-15

  icycrystal
  in general, this may be the rule if thumb - "rule of thumb suggests holding a percentage of stocks equal to 100 minus one's age"...

  I think it would also depend on your risk tolerance. also, depending on your financial health at that point in your life.

  it's always important to have risk management and ensure that you have  [USD] [USD] [USD] for emergencies.

  @Shyon @Aqa @GoodLife99 @Universe宇宙 @rL @LMSunshine @koolgal @HelenJanet @DiAngel

  When will you withdraw your money from stock account for retirement?
  

  
  Rewards

  Leave your comments and also post to win tiger coins~
  

  
  

  Every valid comment will get at least 5 tiger coins!
  

  
  

  The hot and insightful comment will even get hundreds of tiger coins!

  • Universe宇宙: 
    [Chuckle]
  • icycrystal: 
    @TigerGPT is it wise to withdraw your money from stock account for retirement?
• Aqa

  03-17

  Aqa
  [Happy][Happy]🥬🍤🍉🍓Active Ageing upon retirement - Eat and spend and be merry. One of the easiest to remember and therefore common rules of equities/ cash allocation is holding a percentage of stocks equal to 100 minus one's age. For example, a 60-year-old might hold 40% stocks and 60% cash. I find this sensible because our average age of mortality is still lower than 90. Retirees should eat well and live well. Time to spend the money! [Happy][Happy]
• nomadic_m

  03-16

  nomadic_m
  in NZ, dividends are considered income, therefore taxable. not the best idea to live off dividend if retiring here. alternatively, would probably chaching a lump sum every now & then to cover expenses. anyway, still another few decades to go, hopefully by then there are more options available
• jhtiger

  03-16

  jhtiger
  when I'm closer to retirement or retired I wouldn't want excessive volatility as I wouldn't have the time to ride it out, so yes I'd hold more cash as I approach that age