Want to retire early? Top tips for getting there
5. Maintain a diversified portfolio
Once you are on your way and saving diligently, be sure you are investing appropriately. The conventional wisdom used to be that your portfolio should have a very high allocation to bonds by the time you were close to retirement age, but that advice really only worked when people retired with pensions and spent only 10 years in retirement.
These days, hardly anyone has a pension and people are retired for two or three decades or longer. The only way to keep up with inflation and still have a shot at having assets remaining when you are 85 or 90 is to have a healthy allocation to equity mutual funds throughout your retirement. Investing very conservatively may seem safer but when your retirement assets are depleted when you are just 75, you wont have many options to work with.