Reduce volatility by having fixed income as we age?

Reader says...
Morning AK, as you get older, will you consider to be more defensive in your portfolio?

Means shifting more to SSB, CPF etc instead of blue chip stocks for example?

Just in case touch wood financial crisis then your portfolio less time to recover.

Appreciate your thoughts as always. 😉







AK says...
I guess your question is about reducing volatility in our investment portfolio.

Well, for most of us, that should be the job of our CPF savings. 😉

Why do I say "for most of us"?

Remember my blog on "unless we are very rich"?






Too defensive an investment portfolio and the returns would be compromised too much and might not be meaningful enough for us to have a comfortable retirement.

Again, this is "for most of us".

For those who have plenty of money sloshing around, they don't have to be as particular. 😉






I am investing for income mostly.

Volatility which could result in plunging share prices doesn't bother me.

I am more concerned with receiving dividends from my investments, during good and bad times.

In fact, I welcome plunging prices as that means I could buy more on the cheap. 😉






Related post:
CPF is all we need unless very rich.