Vincenzo Corleone
Full time employment: Posting here.
- Joined
- Jul 20, 2005
- Messages
- 617
Hi,
With about 20 years before I can touch money in my tax-sheltered retirement accounts, I'm wondering what sort of benefit I receive by keeping a certain percentage of that money in bond funds. From what I understand, common advice is to keep a certain percentage in bonds / bond funds in order to reduce volatility (inverse correlation with stocks?). But with 20 or more years until one can touch that money, does it really matter, other than making me feel less bad when the stock market tanks? Are there additional benefits of keeping money in bonds in a retirement account that you can't touch for 20+ years? Would it not be more beneficial to put it all into (index) stock funds?
I'd appreciate your thoughts. Thanks.
With about 20 years before I can touch money in my tax-sheltered retirement accounts, I'm wondering what sort of benefit I receive by keeping a certain percentage of that money in bond funds. From what I understand, common advice is to keep a certain percentage in bonds / bond funds in order to reduce volatility (inverse correlation with stocks?). But with 20 or more years until one can touch that money, does it really matter, other than making me feel less bad when the stock market tanks? Are there additional benefits of keeping money in bonds in a retirement account that you can't touch for 20+ years? Would it not be more beneficial to put it all into (index) stock funds?
I'd appreciate your thoughts. Thanks.