Retirement Weekly: Why your retirement portfolio is too heavily invested in equities

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No matter how young you are, chances are that you are too heavily invested in equities.

I say this not because I think a bear market is imminent—though, of course, a major decline could begin at any time. Instead, I base this declaration on new research that takes a fresh look at the so-called glide path—the gradual reduction in equity exposure as you approach retirement and then live in retirement.

The new research finds that, in some cases, workers as young as 35 should have no more than 70% in equities. That’s a lot lower than previously thought; the target-date retirement funds at both Fidelity and Vanguard that cater to investors this young currently have 90% or more currently allocated to equities.

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