This article first appeared in the 1st quarter 2019 edition of Personal Finance magazine.
Investors save their whole lives in the hope of ending up with enough money to be able to sustain their lifestyles in retirement. It is generally accepted that if an investor saves 15% of their salary for their entire working life, they will have sufficient savings in order to retire comfortably. While a sufficient savings rate is vital, investors generally have more questions than answers when it comes to putting together an actual retirement plan.
These questions may include:
- Am I invested in the correct asset classes?
- Will the returns I require materialise?
- Will a market decline just before retirement affect me?
- Should I use a life staging strategy to reduce investment risk the closer I get to retirement?