Don’t let cascade risks ruin your retirement

New and soon-to-be retirees can reduce their “risk-return cascade” by adjusting both their portfolio and their investment mindset. Investors who do not manage this risk may wish to have paid more attention to the old Aesop’s tale about a farmer who had a goose that laid one golden egg each day.

If you don’t remember it, I’m going to hunt: Instead of considering how best to protect his goose–and the comfortable lifestyle it provided for him–the farmer decided he wanted to get more eggs, faster. So he ends up chopping up the goose… and a retirement plan.

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