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Should You Derisk Your Portfolio?

Here's what to think about if you're heavy in stocks today.

The following is an excerpt from Christine Benz's recent webcast, Tune Up Your Portfolio in Uncertain Times. Watch the full webcast.

Christine Benz: What do we do with all of this? How do we create an action plan? I think it's important to approach this really getting back to your life stage. I would argue that if you've gone through this exercise, if you flagged some areas where perhaps you're taking too much risk in your portfolio, so if you found that your portfolio's equity allocation is really, really high, and you're planning to retire in the next couple of years, I would argue at that life stage derisking that portfolio is imperative. On the other hand, if you are someone who is in your 30s or 40s, there's probably less of a need to derisk in a really big way. You may want to make some changes around the margins. You might want to peel back from U.S. and put more and more money toward non-U.S. stocks. But it's a little less urgent if you are embarking on retirement in 20 years or more.