With the market downturn of 2008 firmly in the rearview mirror, most investors are cautiously optimistic about the markets. However, many investors are still trying to protect themselves by holding cash, bonds and other income-generating holdings.
Equities are great for growth and should be a part of all investors’ portfolios, but it is prudent to keep a portion of your holdings in bonds and preferred holdings. As you approach retirement, your portfolio should be weighted increasingly toward income in order to protect yourself from market fluctuations and generate cash for living expenses.
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