Bernstein Turnabout?

[unclemick]

Hmmm - circa 1970 I got the impression that 'traditional pension fund' was 60/40. Sooo 1970 to 2010 pretty much 60/40 while I read Ben (Graham), Bogle and Berstein and tap danced around the edges ala REIT's, individual Dividend stocks, high yield corp and few other brain pharts over the decades.

Although the ride was a tad chewy at times - turns out index funds and the old 60/40 was the lead sled dog. The other stuff amounted to more like shifting deck chairs on the Titanic.

I still like/follow what Bogle, Bernstein have to say and manage my male hormone condition with football and a few good stocks.

Nowadays mainly VG Target Ret. 2015 for 'real money and "hurry up just stand there".

heh heh heh - at age 70 slightly lower than 60/40.

P.S. 53/46 and cash - I just checked.

 

[daylatedollarshort]

You will never eliminate risk. You can only move where that risk is.

The problem with "100% safety" is that it drives the needed savings/retirement income streams to infinity (or very close to it). That in itself delays when an individual can retire. Ultimately, it is necessary to decide where the risk/retirement date balance point is.

It depends a lot on your ratio of nest egg + SS + pensions + other income to expenses. If a retiree household has enough cushion, they wouldn't necessarily have to even keep up with inflation and could still have more than enough money in retirement. But most households can probably at least keep up with inflation, more or less, if they have a paid for house or fixed rate mortgage, and can live on their inflation indexed income like SS, COLA pensions and annuities, and TIPS and I bonds interest.

 

[modhatter]

If my reading comprehension is in tact, Bernstein is disagreeing with the authors in advocating Tips as a core holding. He seems to be holding to his original philosophy of stocks still being the best protection against inflation.

He also points out the fear of investors behaving the same with Tips during bear markets (for
Tips, such as now) and getting out at the worst possible time. Maybe I read it wrong and need to re-read it.

 

[dvalley]

Although the ride was a tad chewy at times - turns out index funds and the old 60/40 was the lead sled dog. The other stuff amounted to more like shifting deck chairs on the Titanic.

 

[brewer12345]

The other stuff amounted to more like shifting deck chairs on the Titanic.

Hey, that is what my day job consists of.