Illustration: Derek Zheng for Bloomberg Businessweek
AFTER YEARS of watching strong markets swell portfolios, many recent and would-be retirees are in a nice spot — on paper. But it may be an awkward and anxious moment emotionally. The assets that sent account balances to such heights – particularly a handful of big U.S. technology stocks – now look expensive by many measures and have been showing some weakness this year. At the same time, reducing your exposure to stocks feels dangerous with inflation running at the highest rate in decades, eating away the modest returns of more conservative investments. And with the rise in interest rates seen by many as just getting started, bond funds look vulnerable to losses.