Mark Hulbert: Should retirees hold on to equities? Not necessarily

Retirees receive surprisingly little benefit by dramatically increasing their equity SPX, -0.72% exposure.

That is the conclusion I draw from a recent analysis of retirement finances by financial planner, actuary and retirement researcher Joe Tomlinson. After analyzing a number of different retirement funding scenarios, he found that shifting equity allocation from 50% to 75% increased the present value of a retiree’s total spending in retirement by less than 2%.

The reason this result is so surprising: Retirees have been told over and over again that they must have a healthy allocation to equities if they are to stand any chance of retiring with the standard of living to which they’ve grown accustomed.

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