cardude
Full time employment: Posting here.
- Joined
- Feb 21, 2006
- Messages
- 599
My parents are struggling with their AA. They are in their 70s and their current AA is 66% equities and 32% bonds 1% cash. Individual stocks and and bonds mostly. Not many mutual funds.
They have a financial advisor, and as individual bonds come due she is reinvesting them in more bonds, with maturities of 7 years or less. She is determined to get the bond AA up 50%.
My parents are concerned about taking a big hit on these bonds if inflation cranks up in x years, but they really don't know what else to put the money in. They don't want any more equities. I told them just stick the proceeds in cash.
Is a 7 year or less term short enough maturity? Should they put bond maturity proceeds in all cash until they get a handle on inflation?
They have a financial advisor, and as individual bonds come due she is reinvesting them in more bonds, with maturities of 7 years or less. She is determined to get the bond AA up 50%.
My parents are concerned about taking a big hit on these bonds if inflation cranks up in x years, but they really don't know what else to put the money in. They don't want any more equities. I told them just stick the proceeds in cash.
Is a 7 year or less term short enough maturity? Should they put bond maturity proceeds in all cash until they get a handle on inflation?