50pc bonds at 50. Is this investment philosophy dead?

Bonds might not be the best place to invest in your retirement Credit: AleksandarNakic

The older you get, the more you should invest in bonds and the less you should hold in stocks and shares, so runs the advice traditionally given by financial advisers to those approaching retirement. But does this broad philosophy still hold true, or should investors take a more nuanced financial approach in their retirement?

A rule of thumb has been that you should invest the same percentage of your investment portfolio in bonds as your age, with the remainder in the stock market or cash. For example if you are 20 years old you should have 20pc in bonds and 80 pc in shares or cash. Aged 21, it should 21pc and so on.

Those in favour argue that bonds are less risky than stocks and shares, which...

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