Are You Afraid to Retire? Why?

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[Jay]

I've been moving my retirement investments into a more aggressive posture as I get closer to retirement itself, because I'm already falling short of what I had expected to have accrued by now. At this point though, I'm beginning to think it's not such a good idea. The InvestTalk radio guy (www.investtalk.com), who I respect, was pretty clear that this is not the thing to do. I'd thought it was. How do you all weigh in? I appreciate your thoughts.

[Retired Syd]

@Jay-I spent my working years with a pretty aggressive portfolio (something like 80% stock and 20% bonds). As I got close to retirement, I shifted to a slightly less aggressive mix (75/25), which is still considered pretty aggressive for my age and retirement status. But I need it to last 40-50 years, so need that growth. I think the most important thing right now is to have about 3-5 years of cash on hand at the time you retire so you can ride out the market roller-coasters without having to liquidate the stock portion in bad years.

I wish I knew, it certainly is nerve-racking--but I generally have faith that 3-5 years from now, things are going to be looking up . . .By the way, I think it's important to have a VERY diversified mix in your stock holdings. That has made this down turn less awful for me so far.

[Jay]

Thanks so much, I appreciate your perspective on the matter! Your approach is similar to what Steve Peasley recommended on InvestTalk, which is encouraging because that's what I use as my primary advice. Seems it's time for me to start paying a little more attention to this, I get why it is that a less aggressive stance will be preferable. I do agree with you that being VERY diversified is the way to go, at least I have that set up so far.