I understand that, at least five years before one thinks they may need to spend the money they set aside for long-term investing,(including TheAnswerIs.ca Inc. MLTIP), to reduce volatility and risk, one will need to re-allocate a substantial portion of their long-term investingportfolio (i.e., 30 – 50% or more) to fixed income investments.
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CLARIFICATION
Equity markets can drop by as much as 50% and can take a few years to fully recover. Therefore, if you need to start to draw on your long-term investing portfolio, you should reduce the volatility of your portfolio by reducing the proportion of equities and increasing the amount of fixed income in your portfolio. Once you start to draw on your portfolio, it is safer to have a very significant portion of your long-term investing portfolio in fixed income investments.