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How to think about risk in retirement While retirees are often advised to use the age-in-bonds formula to ensure that their savings will outlast them, a study concludes that it is less risky to increase the equity allocation throughout the golden years than reducing it, according to this article in The Wall Street Journal. As such, buying an inflation-adjusted annuity with payouts enough to cover projected spending or collecting Treasury inflation-protected securities with varied maturities are recommended but not perfect to ensure retirees won't outlive their nest eggs. Holding standard Treasury securities and high-quality municipal and corporate bonds of short maturity instead of an annuity or TIPS is a wiser move than the first two strategies.   The Wall Street Journal

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