Don’t go to cash at age 65
“Prudent men in their dealings incur risk.” – Bacon
One of the great fallacies of investing is the idea that people need to convert all their share-based investments to cash on the day they retire in case there is a stockmarket crash. Certainly, it’s prudent to have at least three years’ planned expenditure in the cash type area but today’s retirees may well live for 30 years or more after they stop work. For most of them, the only asset class that will produce the returns they will need is shares. This is why I urge people to start investing in shares at an early age. Then they won’t be panicked by the inevitable down-turns when they retire.