Anotherproblemisthatbondpricesorstockpricesmightchange

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Unformatted text preview: de your investing, you should look at several and compare their recommendations. Is my optimal asset allocation fixed, or will it evolve over time? There are a couple of reasons your asset allocation might change over time. The first is, as you get older and closer to retirement, your investing horizon will necessarily get shorter. Typically, this means that you should be shifting your wealth away from stocks and towards bonds. However, people usually live long after they retire, and so you don’t want to eliminate stocks altogether. “Lifecycle funds” are a kind of mutual fund that does this for you. Instead of investing in separate stock and bond funds and then shifting the...
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