Conventional wisdom tells us that as we age, our investment portfolio should become more conservative. Once we reach retirement we want to start reducing the volatility in our portfolio, so we add more stable bonds into the portfolio and we start to remove a portion of stocks. As we age further, we may want an even more stable portfolio of investments, so we add even more bonds into the mix. However, "conventional wisdom" doesn’t apply to every situation and every family. When we meet with clients who want to leave an inheritance to family members, or who have charitable inclinations, we often discuss investing in a way that best serves those loved ones (or organizations) they’re trying to help. After all, those safe bonds don’t grow very much over time, so it may make more sense to have the intended inheritance invested in a way that better suits those who will receive those assets. Today’s recommended reading article, "Who Are You Investing For?" dives further into this important topic.
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