1. Friday, May 18, 2012 - 8:21 AM
"If there is no perfect solution, that is in the nature of the markets. But investors need to be braced for the possibility that the fund industry's simplistic solutions, as well as its optimistic forecasts, come with absolutely no guarantees."
Oh, you mean no one really knows what the right advice is? Gosh, why are all these financial advisers, pundits, columnists and analysts getting paid sometimes huge amounts of money to tell people what their proper portfolio should consist of? Because they get away with it. That's why.
2,600 posts since
Apr 6, 2010
Rep Points: 14,072
2. Saturday, May 19, 2012 - 8:31 PM
Folks, for your serious (read:retirement) money, age-in-bonds is a no-brainer. For my fixed-income allocation, I am somewhat of an outlier (by Boglehead standards), as I tend to tilt toward CDs rather than bond funds. Once you get to a certain point, after all, it's just about keeping score. When you have enough "in the bank" (so to speak) to retire safely (at a 4% safe withdrawal rate), it's not a great idea to take chances.
137 posts since
Feb 14, 2011
Rep Points: 937
3. Sunday, May 20, 2012 - 5:50 AM
Bozo, according to your age-in-bonds rule, I should have 40% of my money in stocks. Maybe I fit in your last category (not needing to take excessive risks), so I would never trust having that much of my assets in equities, after witnessing the carnage in 2008-9. Considering the reckless monetary policy being pursued by the Fed and the irresponsible fiscal policy of our govt, I think the stock market is an accident waiting to happen. I don't know when, but I am sure most investors will panic at the wrong time.
BTW, I was telling everyone I knew that the real estate market was going to implode about 3 years before it happened. Having been employed in the real estate finance field, it wasn't hard to figure out. Median income and housing prices were way out of whack. I can't tell you how many real estate brokers said I was nuts. At one point I began to doubt myself as well, since I was so early.
541 posts since
Aug 3, 2010
Rep Points: 3,388