It's a strategy that leads too many people in their late career to veer off the path toward a financially secure retirement:

"Retirees and near-retirees need to invest as conservatively as possible."

As you're nearing retirement, it does make sense to start a gradual shift toward more conservative investments in your nest egg. This is especially true if you think you'll need to rely on investments for at least some of your retirement income. One way to render your portfolio more income-oriented is to trade some of your equities (stocks and stock funds) for fixed-income investments (including bonds and bond funds).

Just remember that it's important to find the right balance. If your portfolio becomes too heavily invested in lower-risk, lower-return investments such as fixed income and cash, inflation may do serious damage to your ability to make ends meet in retirement.

Generally, throughout pre-retirement and well into retirement, you should continue to invest for the long term. After all, you may well live decades beyond the day you retire. According to the Social Security Administration, the average man who is 65 today is expected to live to 84, while the average woman who is 65 today is expected to live to the age of 86.6.

Bottom line: as you draw closer to retirement, your portfolio should contain a diversified investment mix that reflects your goals, your return objective, your risk tolerance and a rest-of-your-life time horizon.

US SCORE no. 12103-211US_6

This material is provided solely for educational purposes; it does not take into account any specific individual facts and circumstances. It is not intended, and should not be relied upon, as tax, accounting, or legal advice.