NEW YORK (MainStreet) -- Waiting to invest in bonds until you are nearly ready to retire will help boost the returns in your retirement portfolio.
Some financial planners and experts advise Gen X and Millennial investors to wait until they only have five to 10 years before they retire to purchase bonds.
Many investors don't need to buy any bonds at all before retirement, said Robert Johnson, a professor of finance at Creighton University's Heider College of Business. Since life spans are increasing, investors need to ensure they have accumulated enough savings throughout their retirement. A study of Baby Boomers by Allianz Life Insurance Company found that 61% fear outliving their money in retirement more than death.
"Most people saving for retirement wrongly assume that their investment time horizon ends on the day they retire," he said. "With longer life expectancies and longer time horizons, investors are well served to invest in asset classes that will continue to grow once their retirement begins."