I've basically seen the same article three or four times today that Fidelity is sounding the alarm to baby boomers within 10 years of retirement to cut back on stocks. They are recommending that people in this category have their portfolio in 70% or less stocks. I've been in the process over the last few years to increase my bond holdings. My DH and I fired our financial planner a few years back and he had us in all stocks (some market sector mutual funds - like healthcare and real estate). I've been slowing shedding some of that stuff and rebalancing. I logged in today and discovered that I am at 76% stocks.
So I decided to trade $50k of Fidelity Small Cap Discovery to Fidelity Total Bond (which I already hold) and $50k of Fidelity Low Priced Stock to Fidelity Capital and Income. I discovered through my research that the two stock funds historically have done about the same performance as the bond funds. So I **think** I preserved my growth potential while also reducing risk...
Is anyone else contemplating changes based on the Fidelity guidance? Or have opinions on my exchange?
So I decided to trade $50k of Fidelity Small Cap Discovery to Fidelity Total Bond (which I already hold) and $50k of Fidelity Low Priced Stock to Fidelity Capital and Income. I discovered through my research that the two stock funds historically have done about the same performance as the bond funds. So I **think** I preserved my growth potential while also reducing risk...
Is anyone else contemplating changes based on the Fidelity guidance? Or have opinions on my exchange?