Rate increase

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Rate increase

Postby AT11 » Sun Mar 24, 2013 8:04 am

So is a large % allocation to bonds (total bond 55%/intermediate bond 15%/Tips 30%) OK just so a person is still accumulating and likely able to work 10 more years and not need withdrawls during this period? Have 42% overall in bonds. Am in great health and very stable and rewarding career. Have 55% equities and 3% cash. Everything in Vanguard basically TSM/total foreign/etc. I guess basically downside risk from every direction but should be able to continue savng a significant amout for next ten years, then be making RMD. Would rate increase/market pull back be basically a buying opportunity? Would like to rebalance to 60/40 Bonds/Stocks over next 10 years.
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Re: Rate increase

Postby dickenjb » Sun Mar 24, 2013 8:41 am

Sounds like you are doing fine.

I do not know why so many people waste so much time worrying about a bond debacle. They are still less volatile than stocks and no one seems to be worried about stocks these days.
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Re: Rate increase

Postby Call_Me_Op » Sun Mar 24, 2013 8:59 am

You need to be aware that based upon history, the risk in your stocks is far greater than the risk in your bonds over the next 10 years.
Best regards, -Op | | "In the middle of difficulty lies opportunity." Einstein
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