It can whittle away at the purchasing power of your savings over time. Investing for a long, secure retirement Even when retired, your investing horizon may be 20 years or more. As a result, you need to guard against the possibility of outliving your savings. Your funds must have enough growth potential to offset inflation while meeting your needs throughout a prolonged retirement. That's not to say that you should ignore GICs and other highly secure interest-bearing assets.
Safety remains the cornerstore of any retirement plan.
The key is to build a balanced portfolio that provides safety, income, and growth in the proportions that you need. The makeup of your portfolio will be determined by how much risk you're willing to take. They have the potential for steady growth and also generate dividend income. More adventurous individuals might choose more aggressive equity holdings, such as mutual funds that focus on emerging markets of the Far East. By the same token, you want to diversify your interest-bearing investments by staggering the maturity dates.