The perils of piling into cash

CASH

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It might feel safe in volatile markets but investors relying on a pile of cash run the less obvious risk of not being able to fund their retirement lifestyle, writes Tony Stenning, head of UK retail at BlackRock.

For those who watched the stock market plummet in early August and have since remained glued to the almost daily crashes and climbs, the investment world may seem like a scary place. The numbers have certainly been dramatic, but is this type of short-term volatility really the biggest risk? Painting investment risk by numbers has its shortcomings as a process, but also may lead investors’ attention away from the more practical risks of retirement planning. If you cannot measure it, you cannot manage it, says the management theory aimed at refining manufacturing processes to drive out def...

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