Why you should ignore (conventional) personal finance advice before retirement

Most personal finance advisors suggest reducing “risk” a year or two before retirement. Ignore them, reckons Warren Ingram.

Most retirement funds – and many personal finance experts – advise investors to reduce the risk profile of their retirement portfolios a year or two before kicking back.

The thinking is that people close to the retirement age can’t afford to lose money in a stock market crash.


It’s a terrible idea to follow this conventional advice, warns personal finance advisor Warren Ingram (Galileo Capital), because it assumes that people stop investing upon retirement.

If you are retiring at 65, you might live for another 20 to 25 years.

You need to get as much capital growth as possible without taking excessive risk.

Shares are your best protection against inflation.

If you sell some or all your shares before retirement, when are you going to buy again?

The Money Show’s Bruce Whitfield interviewed Ingram.

He suggested investing in an appropriate mix of assets to suit your lifetime objectives – and then to stick with it before and after retirement.

Don’t radically change your asset mix just before retirement, warns Ingram because that just amounts to another form of market timing.+