Conventional wisdom in the investment advisory world has typically been that retirees should gradually reduce their equity exposure during retirement. One popular rule of thumb is that equity allocations should be annually rebalanced based on a formula of 100 less the retiree’s age. For example, a...
Emotions can cause investors to do the wrong thing at the wrong time. We all know, rationally, we should buy low and sell high. Yet emotions can cause investors to do just the opposite.