No, retirement funds shouldn’t sit entirely in the stock market, especially as you age. Market downturns like 2008 or 2021 can wipe out a large share of savings and take years to recover from, so shifting toward less risky investments over time helps protect what you’ve built.
The best strategy to prepare for retirement is to learn how to budget, learn how to save, and learn how to not rely on the stock market for your future retirement. And why do I say not to rely on the stock market? Because the stock market varies, and as you age risk tolerance goes down. By that I mean, you can’t have a downturn like in 2008 or 2021, where you lost 38% of the market share of your income in that timeframe. And now you have to work an extra three to five years just to break even. As you age you have to go in less risky opportunities and stabilize your retirement, so you retire as you want to, safe and sound.
