Vanguard: "Inflation Risk for Global Economy"

[friar1610]

I am going the opposite way. After 5 years of maxing out my IBonds since retirement, I am cashing them all out and investing them in higher quality preferred stocks getting 6%, instead of the pitiful 0 fixed and 1% plus inflation adjustment.
My situation is different as I live on my pension easilyand do not need a well balanced investment plan. Plus I can pay in the 15% tax bracket instead of the 25% paid on CDs or IBonds. Rates can go up or down the next 20-30 years and I am not going to worry about it too much as I will just buy more of them with the dividends, along with my continued mutual fund purchases.


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Hmmm... I'm in a similar situation with respect to pension. But I've always felt I should still have an (increasingly conservative as I get older) balanced AA. I'll have to mull over your approach regarding preferred, dividend paying stocks.

Do you mind if I ask what you envision your overall equity allocation to be (including the preferrerds you plan on buying)?

 

[Alan]

OP, since the article is about Vanguard execs who issued a warning about global deflation, would you like me to change the thread title from inflation to deflation?

Vanguard Group execs say deflation a real risk for global economy