I often struggle with the question how much in Bonds ?
One way I have seen heard /read about is -
1) A percentage of your investments, as Age in Bonds + Cash ( Or Age - 10) as a percentage of their total investments or as often stated 110- age as Stocks % and rest in Bonds
The other way is -
2) Finite number of 10 or say 15 years of living expenses, this implies waiting for the Stock Market downturns in a recession/depression to recover. We know no Market Downturns have lasted more than 5 years, not even great depression.
Generally speaking how many years of living expenses would you be comfortable with (or suggest) & the rest in Equities.
I know the answer is it depends upon one's risk tolerance, but I am just curious to know what you, forum members think/suggest a 64 yr old about to start retirement with paid for house & no debt
No, all Bonds & no equities is not an option
One way I have seen heard /read about is -
1) A percentage of your investments, as Age in Bonds + Cash ( Or Age - 10) as a percentage of their total investments or as often stated 110- age as Stocks % and rest in Bonds
The other way is -
2) Finite number of 10 or say 15 years of living expenses, this implies waiting for the Stock Market downturns in a recession/depression to recover. We know no Market Downturns have lasted more than 5 years, not even great depression.
Generally speaking how many years of living expenses would you be comfortable with (or suggest) & the rest in Equities.
I know the answer is it depends upon one's risk tolerance, but I am just curious to know what you, forum members think/suggest a 64 yr old about to start retirement with paid for house & no debt
No, all Bonds & no equities is not an option