charting retirement

What asset mix minimizes your chances of a loss?

Even for the most cautious retiree, there is no such thing as a risk-free investment strategy.

No one likes to lose money. But retirees are especially averse to investment losses, since they no longer have a continuing stream of employment earnings.

Take Martha, a 65-year-old who expects to live at least until 94 thanks to good genes and a healthy diet. Apart from Canada Pension Plan and Old Age Security pensions, all her retirement income will have to be generated from her savings. She would like to avoid a capital loss, but how?

Martha considers three asset mixes: 40/60, meaning 40 per cent in stocks (split evenly between U.S. and Canadian ones), and 60 per cent in long-term government bonds; 20/80; and 0/100, me

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