One of the core functions of financial planning is setting up clients’ portfolios in retirement so that resources are adequate to sustain the journey — no small feat, given the uncertainties involved and the need to balance stability and safety against the risk of inflation, as well as the need for growth over the potentially long time horizon.

Conventional wisdom suggests that retirees should manage this challenge by having a moderate exposure to stocks at the start of retirement — to help their portfolio grow and be able to keep up with inflation over the long run — and then reduce equity exposure slowly over time as they age and their time horizon shrinks.

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