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Ask any retired person or investor nearing retirement what their greatest fear would be, and odds are they’d say something about a catastrophic market downturn that wipes out their savings. The fear of loss is particularly great for any investor, but it is especially so for those near or in retirement. After all, when you are not working or are getting ready to stop punching the clock, there isn’t much time to make up for a large stock market crash or downturn.

Or at least that’s what we think.

The truth is, we do have a long time – even during retirement. And that focus on preservation and conservative investing could significantly hurt our nest eggs.

The Longevity Problem

Given how hard it is to save up a tidy sum in order to retire, it’s understandable that investors would want to protect their savings from market losses. It’s why bonds and other fixed-income products are huge draws for retirees. There’s even that conventional financial planning tool that says you should have your age in bonds (Does the famed 4 percent retirement rule still hold water? Find out in 4% Rule and Dividends).

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