As you approach retirement, it’s important to start thinking about how to manage your risk. This means being more conservative with your investment portfolio. There are a few reasons why this is important. First, as you get older, you have less time to recover from market losses. Second, you may need to start drawing income from your portfolio sooner than later. Finally, you may have less risk tolerance as you get closer to retirement.

Here are a few tips for being more conservative with your retirement portfolio:

- Reduce your exposure to stocks: Stocks are the riskiest asset class, but they also have the potential for the highest returns. As you get closer to retirement, you may want to reduce your exposure to stocks and increase your exposure to bonds and cash.
- Choose high-quality investments: When choosing investments, focus on high-quality investments with a good track record. This includes things like blue-chip stocks and investment-grade bonds.
- Rebalance your portfolio regularly: As your investments grow and change, it’s important to rebalance your portfolio regularly. This means selling some of your investments that have performed well and buying more of your investments that have underperformed. This helps to keep your portfolio aligned with your risk tolerance and investment goals.

Here are a few additional benefits of being more conservative with your retirement portfolio leading up to retirement:

- Peace of mind: Knowing that your portfolio is invested conservatively can give you peace of mind, especially during periods of market volatility.
- Reduced risk of losses: Being more conservative with your portfolio can help to reduce your risk of losses. This is important because you may not have enough time to recover from market losses as you get closer to retirement.
- More predictable income stream: Conservative investments tend to generate more predictable income than risky investments. This can be helpful if you’re planning to start drawing income from your portfolio in retirement.

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