Platforms & Pensions you know you need your money in the near term , and it has given rise to an investment strategy called lifestyling .
Lifestyling Most people plan to access their investments at some point , typically at retirement . In the old days , many people would cash in their portfolio of equities and bonds and buy an annuity , meaning that defending the value of their investments from market falls was paramount . To this day , lifestyling is still common practice among advisers , and even pension and autoenrolment funds . Lifestyling involves three investment stages : taking greater portfolio risk at the start , de-risking as you approach your target , then removing risk altogether and focusing on income-generating assets as you reach your retirement date .
Risk vs return
Higher risk - can be frightening
Medium risk - still a bumpy ride
Return
Low risk - fewer downs and fewer ups
Time
Issue 86 - July 2022 / 63 /