The emphasis on asset allocation to produce income for retirees and to optimize portfolio performance may be circumventing other, just as important, aspects of retirement planning. The right time to retire, current spending habits, and seeking other sources of retirement income such as reverse mortgages may hold just as much impact for reaching retirement goals.
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Many investors who planned to retire by a certain date have had to continue working because of the recession. These retirees may benefit from waiting to receive Social Security income later so that their payments will be larger after they stop working.
Investors who have not sufficiently saved for retirement may need an income boost or cash infusion from another source, often times their homes. A recent survey
found that asset allocation is actually a minor consideration in light of the full spectrum of retirement portfolio needs.