100% Equities Through Retirement? What the Research Shows (Canadian Financial Summit 2025)
I recently presented at the Canadian Financial Summit on a topic that questions one of the foundations of conventional investment advice.
Should investors really reduce their stock exposure as they age?
The presentation was based on a newly published academic study titled:
“Beyond the Status Quo: A Critical Assessment of Lifecycle Investment Advice.”
The study examined long-term data from 39 developed countries and reached a conclusion that challenges traditional thinking.
An all-equity portfolio with 33 percent domestic stocks and 67 percent international stocks outperformed traditional stock and bond strategies. It built more wealth, supported higher retirement income and reduced the probability of running out of money.
This directly challenges two common beliefs:
Investors should diversify between stocks and bonds.
Investors should reduce stock exposure as they get older.
At the Summit, I explained:
- Why this study is considered high quality
- Why bonds may not provide the long-term protection many assume
- Why international diversification may be more effective than bond allocation
- What this means for Canadian versus US investors
- Whether a 100 percent equity strategy is truly safe
If you would like the full detailed breakdown of the study, including supporting research and charts, you can read my original post here:
New Study Supports 100% Equity Investing for Life
If you are interested in the reader comments and objections, you can read:
New Study Supports 100% Equity Investing for Life – The Debate
This topic continues to generate strong reactions.
Unconventional wisdom often feels uncomfortable. But long-term investing decisions should be based on evidence, not habit.
What do you think?
Is maintaining a high equity allocation throughout life, including retirement, a strategy you would consider?
Ed
Planning With Ed
Ed Rempel has helped thousands of Canadians become financially secure. He is a fee-for-service financial planner, tax accountant, expert in many tax & investment strategies, and a popular and passionate blogger.
Ed has a unique understanding of how to be successful financially based on extensive real-life experience, having written nearly 1,000 comprehensive personal financial plans.
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Hey Ed! Long time reader first time caller
I am confused when you say things like “4% is a safe withdrawal rate” but then later say during a bear market “if your withdrawal rate gets to 5% or higher reduce your income”
This implies to me you are looking at their retirement on day 1, say they have 1 million, and then tell them they are safe to take out 40k for life.
Why shouldn’t a client just plan to take out 4% of their retirement fund each year? If it’s up, then they got a bonus that year! Save it or take another trip. If the market is down, gotta trim some spending
What am I missing?
Hi Maria,
I don’t have a forum, but thanks for the idea. I’ll consider it.
You can comment or ask questions below any of my posts on Facebook, YouTube or on my blog. I might miss a question on Facebook, but I eventually answer all questions on my YouTube channel or on my blog.
Ed
Love your podcast! Do you have a forum on Facebook where people can just talk and ask questions from you?