It is common to meet someone who believes that all of their assets should be in equities, even in retirement. The rationale is that, over the long term, equities tend to be one of the best places for growth, which is true. However, these claims often point to long-term averages, which, when you dive a little deeper into the application, can be misleading.
This article is intended to address two major arguments. The first is that averages are a great tool to use when you are planning your retirement, but there’s more that needs to be addressed. The second is that the markets have a history of going flat for 10-plus years every 20 years or so, which can create some serious problems in retirement.
