4 Costly Mistakes Retirees Make When Stocks Soar — and How To Protect Your Nest Egg

The article warns retirees to protect nest eggs amid strong stock market rallies, focusing on risks to the US SP 500. It urges sticking to original asset allocations and rebalancing (suggested when equities exceed target by more than 5%) to manage elevated equity exposure. The piece highlights valuation risk (Shiller CAPE signals higher valuations can lead to lower long-term returns), tax consequences of rebalancing in taxable accounts (short-term gains taxed as ordinary income; long-term gains can be taxed as low as 0%), and broader economic risks — persistent inflation, surging oil prices and geopolitical tensions — that could undermine gains. Practical steps: rebalance within tax-advantaged accounts, maintain diversification, and avoid chasing hot stocks.