Do you hold your age in bonds?

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
icedtea
Posts: 743
Joined: Tue May 12, 2009 9:12 pm

Do you hold your age in bonds?

Post by icedtea » Wed Jan 25, 2012 8:31 pm

I'm 30 and my AA is 75/25. This is a little aggressive relative to the advice that we should be holding our age in bonds. But, I see this as something that is more critical to adhere to as you get closer to retirement age. I anticipate I'll get closer to my age in bonds as I approach 40.

What about you? Do you hold your age in bonds? It would help if you shared your age in your reply, to provide some context.

Thanks,
Iced Tea

User avatar
Noobvestor
Posts: 4754
Joined: Mon Aug 23, 2010 1:09 am
Contact:

Re: Do you hold your age in bonds?

Post by Noobvestor » Wed Jan 25, 2012 8:33 pm

Used to hold less, now hold more thanks to making more (and saving more) up to this point in life than I previously expected - the embedded 'tip' in this response is: it's a great rule of thumb, but as your need/ability to take risk changes it's OK to venture from the path, too. That said, I also follow Ben Graham's rule of thumb: never be more than 75% or less than 25% on either the bond or stock side (or, put another way: never have less than 25% in stocks or less than 25% in bonds).
"In the absence of clarity, diversification is the only logical strategy" -= Larry Swedroe

chaz
Posts: 13601
Joined: Tue Feb 27, 2007 2:44 pm

Re: Do you hold your age in bonds?

Post by chaz » Wed Jan 25, 2012 8:36 pm

No - maybe later..
Chaz | | “Money is better than poverty, if only for financial reasons." Woody Allen | | http://www.bogleheads.org/wiki/index.php/Main_Page

User avatar
cinghiale
Posts: 1163
Joined: Wed Oct 17, 2007 4:37 pm

Re: Do you hold your age in bonds?

Post by cinghiale » Wed Jan 25, 2012 8:40 pm

The quick answer is "yes, almost."

I'm mid-50s, and La Signora is early 50s. We have just under 45% equities, and just over 55% fixed income.

I blend "age in bonds" (which I consider to be a very good rule of thumb), with Adrian's Rule (maximum tolerable % loss x 2 as the most you should put into equities), and Larry Swedroe's test of "ability, willingness, and need" to take risk with a portfolio. Toss them all into the Vitamix, press the "Smoothie" button, and out comes a general indicator that provides cognitive consistency and the ability to sleep at night.
"We don't see things as they are; we see them as we are." Anais Nin | | "Sometimes the first duty of intelligent men is the restatement of the obvious." George Orwell

User avatar
momar
Posts: 1359
Joined: Sun Nov 13, 2011 12:51 pm

Re: Do you hold your age in bonds?

Post by momar » Wed Jan 25, 2012 8:42 pm

I do age-10, and I'll be honest: the -10 is market timing in the sense that I think equities beat bonds over the medium term (5-10 years).
"Index funds have a place in your portfolio, but you'll never beat the index with them." - Words of wisdom from a Fidelity rep

chipmonk
Posts: 625
Joined: Wed Mar 09, 2011 4:32 pm
Location: PDX

Re: Do you hold your age in bonds?

Post by chipmonk » Wed Jan 25, 2012 8:44 pm

icedtea wrote:I'm 30 and my AA is 75/25. This is a little aggressive relative to the advice that we should be holding our age in bonds. But, I see this as something that is more critical to adhere to as you get closer to retirement age. I anticipate I'll get closer to my age in bonds as I approach 40.

What about you? Do you hold your age in bonds? It would help if you shared your age in your reply, to provide some context.

Thanks,
Iced Tea
I'm 30 too and my AA is 80/20. I believe that I have the "stomach" to handle big swings in my portfolio while continuing to contribute, TLH, and rebalance. Being down about 15-20% at one point in 2011 didn't bother me much at all.

I expect that I will start to shift my assets to a more conservative allocation when I get married or think seriously about buying a house... or face any other life event that might require me to have a substantial pool of money with a known value before retirement.

User avatar
Toons
Posts: 13016
Joined: Fri Nov 21, 2008 10:20 am
Location: Hills of Tennessee

Re: Do you hold your age in bonds?

Post by Toons » Wed Jan 25, 2012 8:45 pm

No :D
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee

User avatar
Sheepdog
Posts: 5184
Joined: Tue Feb 27, 2007 3:05 pm
Location: Indiana, retired 1998 at age 65

Re: Do you hold your age in bonds?

Post by Sheepdog » Wed Jan 25, 2012 8:45 pm

Yes, at my old f... age of 78
It's not what you gather, but what you scatter which tells what kind of life you have lived---Helen Walton

john94549
Posts: 4638
Joined: Tue Jul 26, 2011 8:50 pm

Re: Do you hold your age in bonds?

Post by john94549 » Wed Jan 25, 2012 8:50 pm

Wife and I both turn 65 this year, and we are "pretty close" to age-in-bonds.

User avatar
Jake46
Posts: 748
Joined: Tue Feb 20, 2007 10:16 am
Location: Fort Collins, Colorado

Re: Do you hold your age in bonds?

Post by Jake46 » Wed Jan 25, 2012 8:57 pm

Age 65. Bonds 64%

Sam I Am
Posts: 2062
Joined: Tue Feb 20, 2007 7:58 pm

Re: Do you hold your age in bonds?

Post by Sam I Am » Wed Jan 25, 2012 9:01 pm

Message deleted.
Last edited by Sam I Am on Tue Oct 08, 2013 5:25 pm, edited 1 time in total.

User avatar
wander
Posts: 2557
Joined: Sat Oct 04, 2008 9:10 am

Re: Do you hold your age in bonds?

Post by wander » Wed Jan 25, 2012 9:01 pm

It's all depends. If you have a large asset, you can use age in bonds rule of thumbs to invest. For many, rule of thumb is too conservative.

User avatar
Rob5TCP
Posts: 3166
Joined: Tue Jun 05, 2007 7:34 pm
Location: New York, NY

Re: Do you hold your age in bonds?

Post by Rob5TCP » Wed Jan 25, 2012 9:02 pm

Age is 53 and have 60+% in fixed income.

User avatar
joe8d
Posts: 4293
Joined: Tue Feb 20, 2007 8:27 pm
Location: Buffalo,NY

Re: Do you hold your age in bonds?

Post by joe8d » Wed Jan 25, 2012 9:02 pm

No.Will be 70 this year and FI is about 50%.
All the Best, | Joe

jginseattle
Posts: 727
Joined: Fri Jul 01, 2011 7:33 pm

Re: Do you hold your age in bonds?

Post by jginseattle » Wed Jan 25, 2012 9:10 pm

I'm pretty close.

User avatar
gasman
Posts: 716
Joined: Mon Jul 30, 2007 6:13 pm

Re: Do you hold your age in bonds?

Post by gasman » Wed Jan 25, 2012 9:24 pm

age minus 13.

JULIE
Posts: 72
Joined: Sat Jul 31, 2010 5:02 pm

Re: Do you hold your age in bonds?

Post by JULIE » Wed Jan 25, 2012 9:39 pm

I've been working my way there.

User avatar
Steelersfan
Posts: 3538
Joined: Thu Jun 19, 2008 8:47 pm

Re: Do you hold your age in bonds?

Post by Steelersfan » Wed Jan 25, 2012 9:44 pm

I'm about age - 20%.

Individual circumstances have to be taken into account.

Rules of thumb sometimes need a thumb on the scale.

icedtea
Posts: 743
Joined: Tue May 12, 2009 9:12 pm

Re: Do you hold your age in bonds?

Post by icedtea » Wed Jan 25, 2012 9:51 pm

Sounds like my approach is shared by many of you. Interesting. Thanks for the posts.

User avatar
Boglenaut
Posts: 3090
Joined: Mon Mar 23, 2009 7:41 pm

Re: Do you hold your age in bonds?

Post by Boglenaut » Wed Jan 25, 2012 9:57 pm

We are more aggressive than "age in bonds", but we do increase Bonds based on age.

JW-Retired
Posts: 6957
Joined: Sun Dec 16, 2007 12:25 pm

Re: Do you hold your age in bonds?

Post by JW-Retired » Wed Jan 25, 2012 10:15 pm

Age -20. But that's a lot of bonds.
Retired at Last

User avatar
FelixTheCat
Posts: 1488
Joined: Sat Sep 24, 2011 12:39 am

Re: Do you hold your age in bonds?

Post by FelixTheCat » Wed Jan 25, 2012 10:16 pm

Yes + 10% more. I am one of those investors that stresses over my finances during turbulent times. To steady my nerves, I read that I should have my age in bonds + 10%. Now, I no longer stress.

You have to go with an asset allocation that will keep you invested long-term without causing sleepless nights.
Felix is a wonderful, wonderful cat.

gkaplan
Posts: 7034
Joined: Sat Mar 03, 2007 8:34 pm
Location: Portland, Oregon

Re: Do you hold your age in bonds?

Post by gkaplan » Wed Jan 25, 2012 10:24 pm

Age - 41
Gordon

User avatar
bru
Posts: 1001
Joined: Fri Jul 23, 2010 6:32 pm

Re: Do you hold your age in bonds?

Post by bru » Wed Jan 25, 2012 10:27 pm

Not even close. I know it's wrong, I just can't seem to correct it :? .

User avatar
Rick Ferri
Posts: 8597
Joined: Mon Feb 26, 2007 11:40 am
Location: Georgetown, TX. Twitter: @Rick_Ferri
Contact:

Re: Do you hold your age in bonds?

Post by Rick Ferri » Wed Jan 25, 2012 10:33 pm

No, and I don't intend to, especially when you compare today's artificially low interest rates forced down by Fed policy to unusally attractive stock valuations created by emotionally unstable investors.

Rick Ferri
The Education of an Index Investor: born in darkness, finds indexing enlightenment, overcomplicates everything, embraces simplicity.

icedtea
Posts: 743
Joined: Tue May 12, 2009 9:12 pm

Re: Do you hold your age in bonds?

Post by icedtea » Wed Jan 25, 2012 10:39 pm

Rick Ferri wrote:No, and I don't intend to, especially when you compare today's artificially low interest rates forced down by Fed policy to unusally attractive stock valuations created by emotionally unstable investors.

Rick Ferri
Rick, what would you say is a good AA for a 30-year-old? I know it depends on each person's risk tolerance, but ballpark?

User avatar
CABob
Posts: 4609
Joined: Sun Feb 25, 2007 8:55 pm
Location: Southern California

Re: Do you hold your age in bonds?

Post by CABob » Wed Jan 25, 2012 10:40 pm

No. I would have to lower my age about 10 years in order to follow this rule. :wink:
Bob

madbrain
Posts: 5127
Joined: Thu Jun 09, 2011 5:06 pm
Location: San Jose, California

Re: Do you hold your age in bonds?

Post by madbrain » Wed Jan 25, 2012 10:42 pm

I own more than $35 in bonds ;)
35% ? Not even close.

BuckyBadger
Posts: 849
Joined: Tue Nov 01, 2011 11:28 am

Re: Do you hold your age in bonds?

Post by BuckyBadger » Wed Jan 25, 2012 10:47 pm

We/I do... pretty much.

We just switched from mostly a Vanguard 2045 Target Retirement, which was only 10% bonds. Now, using a three fund lazy portfolio we are a little less then 30% in bonds. We'll see how it looks after a year of 401k contributions...

I am 31, the hubs is 32.

I think we'll probably stay at 30% for a while, though. I'm not planning on tracking along year by year, but eventually we'll increase out percentage.
Last edited by BuckyBadger on Wed Jan 25, 2012 10:52 pm, edited 1 time in total.

Gauntlet
Posts: 186
Joined: Wed Nov 30, 2011 10:06 am

Re: Do you hold your age in bonds?

Post by Gauntlet » Wed Jan 25, 2012 10:50 pm

I have seen many suggest age in bonds or age in bonds minus 10 so...I met them in the middle and went age in bonds minus 5.

rokidtoo
Posts: 391
Joined: Sun Jul 04, 2010 7:53 am

Re: Do you hold your age in bonds?

Post by rokidtoo » Wed Jan 25, 2012 11:00 pm

Nope. I basically hold my age in stocks. Two reasons:
1.) I receive a federal pension that I can live on. Counting the pension, I'm 80%+ fixed income.
2.) Every study I've seen suggests a high stock allocation if you want to withdraw 4% per annum of your porfolio over an extended period.---Jim

User avatar
FNK
Posts: 1359
Joined: Tue May 17, 2011 7:01 pm

Re: Do you hold your age in bonds?

Post by FNK » Wed Jan 25, 2012 11:04 pm

Age - 10 for me.

Justifications:
- I can handle swings
- The entire portfolio is in retirement accounts
- I also have a lot of real estate
- I'm shooting for early retirement
- If the portfolio underperforms, I'll just work a little longer
- Hence a long horizon and a lot of risk tolerance
- And a bit of market timing: bonds are less attractive than stocks right now

I'm also keeping my parents at (their) age - 10 (down from 100% equity a year ago).

SteveB3005
Posts: 1425
Joined: Mon Feb 19, 2007 9:29 pm

Re: Do you hold your age in bonds?

Post by SteveB3005 » Wed Jan 25, 2012 11:05 pm

Yeah close, I'm 55 and hold 50% fixed.

User avatar
tc101
Posts: 3015
Joined: Tue Feb 20, 2007 3:18 pm
Location: Atlanta - Retired in 2004 at age 54

Re: Do you hold your age in bonds?

Post by tc101 » Wed Jan 25, 2012 11:24 pm

Age 62. Bonds, CDs, bank accounts and other fixed income 53% of liquid assets. I also have real estate.
. | The most important thing you should know about me is that I am not an expert.

User avatar
mhc
Posts: 3774
Joined: Mon Apr 04, 2011 10:18 pm
Location: NoCo

Re: Do you hold your age in bonds?

Post by mhc » Wed Jan 25, 2012 11:46 pm

One year ago I would have been a newborn. This year I am 20 years old. I think in another 5-10 years, I'll start maturing again. I'll probably stop aging at 50 or so.

I like the concept of my bond percentage determing my age better than the other way around.

User avatar
BHCadet
Posts: 391
Joined: Sun Jan 15, 2012 12:47 am
Location: SoCal

Re: Do you hold your age in bonds?

Post by BHCadet » Wed Jan 25, 2012 11:55 pm

Age - 15

User avatar
Jerilynn
Posts: 1929
Joined: Tue Sep 06, 2011 12:49 pm
Location: USA, Earth

Re: Do you hold your age in bonds?

Post by Jerilynn » Thu Jan 26, 2012 12:22 am

"Your age in bonds" is a totally arbitrary number. While it may be a good general guideline for many folks, it's not for me. I am 100% in equities.

With the very low rates nowadays bond funds aren't a good option for many/most people, in my opinion. I don't like Total Bond Fund and don't like the Target Retirement Funds.
Cordially, Jeri . . . 100% all natural asset allocation. (no supernatural methods used)

icedtea
Posts: 743
Joined: Tue May 12, 2009 9:12 pm

Re: Do you hold your age in bonds?

Post by icedtea » Thu Jan 26, 2012 12:25 am

Jerilynn wrote:"Your age in bonds" is a totally arbitrary number. While it may be a good general guideline for many folks, it's not for me. I am 100% in equities.

With the very low rates nowadays bond funds aren't a good option for many/most people, in my opinion. I don't like Total Bond Fund and don't like the Target Retirement Funds.
How long have you been 100% in stocks? How old are you?

This is an approach that I'm sure few on this forum abide by, but to each his or her own.

User avatar
NateH
Posts: 514
Joined: Tue Feb 27, 2007 9:51 am
Location: Minnesota

Re: Do you hold your age in bonds?

Post by NateH » Thu Jan 26, 2012 12:28 am

Age - 10%; we're late 30's
we've had this formula for the past decade, increasing 1% bonds every year.
4X top-twenty S&P 500 prognosticator. I'd start a newsletter, but it would only have one issue per year.

User avatar
Jerilynn
Posts: 1929
Joined: Tue Sep 06, 2011 12:49 pm
Location: USA, Earth

Re: Do you hold your age in bonds?

Post by Jerilynn » Thu Jan 26, 2012 12:30 am

Jerilynn wrote:"Your age in bonds" is a totally arbitrary number. While it may be a good general guideline for many folks, it's not for me. I am 100% in equities.

With the very low rates nowadays bond funds aren't a good option for many/most people, in my opinion. I don't like Total Bond Fund and don't like the Target Retirement Funds.
All that said, I may dabble in the new emerging market bond fund ETF that Vanguard will offer 'early in 2012'.
Cordially, Jeri . . . 100% all natural asset allocation. (no supernatural methods used)

User avatar
Dale_G
Posts: 3112
Joined: Tue Feb 20, 2007 5:43 pm
Location: Central Florida - on the grown up side of 81

Re: Do you hold your age in bonds?

Post by Dale_G » Thu Jan 26, 2012 12:32 am

Age -25. And next year it will be age -26. In other words, I intend to keep the bond allocation constant.

Dale
Volatility is my friend

User avatar
Jerilynn
Posts: 1929
Joined: Tue Sep 06, 2011 12:49 pm
Location: USA, Earth

Re: Do you hold your age in bonds?

Post by Jerilynn » Thu Jan 26, 2012 12:33 am

icedtea wrote:
Jerilynn wrote:"Your age in bonds" is a totally arbitrary number. While it may be a good general guideline for many folks, it's not for me. I am 100% in equities.

With the very low rates nowadays bond funds aren't a good option for many/most people, in my opinion. I don't like Total Bond Fund and don't like the Target Retirement Funds.
How long have you been 100% in stocks? How old are you?

This is an approach that I'm sure few on this forum abide by, but to each his or her own.
I've been 100% in equities since 1995 or so.

How old am I? Why, 39 of course. ;) Actually, I probably have T-shirts older than some of the members of this forum.
Cordially, Jeri . . . 100% all natural asset allocation. (no supernatural methods used)

User avatar
PaddyMac
Posts: 1480
Joined: Fri Jul 09, 2010 10:29 pm

Re: Do you hold your age in bonds?

Post by PaddyMac » Thu Jan 26, 2012 1:06 am

bru wrote:Not even close. I know it's wrong, I just can't seem to correct it :? .
+1
51 tomorrow (!) and less than 20% in bonds, but a lot of new contributions are going to both Wellesley and Total Bond in our new 401k so aiming to correct that over the next five years.
I hope it's not the absolutely worse time to buy bonds... (Holding onto Apple for now though! :sharebeer )

User avatar
stemikger
Posts: 4916
Joined: Thu Apr 08, 2010 5:02 am

Re: Do you hold your age in bonds?

Post by stemikger » Thu Jan 26, 2012 1:20 am

Jerilynn wrote:
icedtea wrote:
Jerilynn wrote:"Your age in bonds" is a totally arbitrary number. While it may be a good general guideline for many folks, it's not for me. I am 100% in equities.

With the very low rates nowadays bond funds aren't a good option for many/most people, in my opinion. I don't like Total Bond Fund and don't like the Target Retirement Funds.
How long have you been 100% in stocks? How old are you?

This is an approach that I'm sure few on this forum abide by, but to each his or her own.
I've been 100% in equities since 1995 or so.

How old am I? Why, 39 of course. ;) Actually, I probably have T-shirts older than some of the members of this forum.
Jerilynn,

Your brave, but at 39 you are still young. Now if you stay 100% in equities forever, I would not call you Brave, I'd call you crazy. LOL. But then again, if you have enough to live on and don't need the money go for the gold. LOL.
Choose Simplicity ~ Stay the Course!! ~ Press on Regardless!!!

User avatar
Jerilynn
Posts: 1929
Joined: Tue Sep 06, 2011 12:49 pm
Location: USA, Earth

Re: Do you hold your age in bonds?

Post by Jerilynn » Thu Jan 26, 2012 2:20 am

stemikger wrote:
Jerilynn wrote:
icedtea wrote:
Jerilynn wrote:"Your age in bonds" is a totally arbitrary number. While it may be a good general guideline for many folks, it's not for me. I am 100% in equities.

With the very low rates nowadays bond funds aren't a good option for many/most people, in my opinion. I don't like Total Bond Fund and don't like the Target Retirement Funds.
How long have you been 100% in stocks? How old are you?

This is an approach that I'm sure few on this forum abide by, but to each his or her own.
I've been 100% in equities since 1995 or so.

How old am I? Why, 39 of course. ;) Actually, I probably have T-shirts older than some of the members of this forum.
Jerilynn,

Your brave, but at 39 you are still young. Now if you stay 100% in equities forever, I would not call you Brave, I'd call you crazy. LOL. But then again, if you have enough to live on and don't need the money go for the gold. LOL.
I do plan to stay 100% equities forever.
Cordially, Jeri . . . 100% all natural asset allocation. (no supernatural methods used)

TheEternalVortex
Posts: 2548
Joined: Tue Feb 27, 2007 9:17 pm
Location: San Jose, CA

Re: Do you hold your age in bonds?

Post by TheEternalVortex » Thu Jan 26, 2012 2:49 am

I am 25 and have about 28% bonds.

User avatar
LH
Posts: 5490
Joined: Wed Mar 14, 2007 2:54 am

Re: Do you hold your age in bonds?

Post by LH » Thu Jan 26, 2012 4:11 am

I am 42, and my split is stock 84/16 bonds.

I have aggressively paid off my mortgage though, my house is 60 percent paid off.

Stocks constitute 66 percent of my net worth at present. So to my net worth risk, only 66 percent of it comes from stock market. 21 percent is in home equity, 11 percent of it is bonds.

So I view my risk more akin to a 70/30 split, than the actual Asset allocation portfolio 84/16 risk. I view my risk as in risk to net worth. Somewhat controversial. The classic rubric is to treat money used to pay off mortgage as going into a black hole of sorts, that has no effect on ones risk profile, and that the Asset allocation risk, tells the story. It also, has no effect on being wealthy under a lot of measures, as home equity is excluded I believe from some/most commonly used definitions of being a "milllionaire" and such. Which is interesting. If one refinances, takes cash out and puts in stock/bonds market, one could become a millionaire, whereas before with money invested in home equity, one is not a millionaire..... That state change via mortgage simple refinance is fascination to me conceptually.

User avatar
LH
Posts: 5490
Joined: Wed Mar 14, 2007 2:54 am

Re: Do you hold your age in bonds?

Post by LH » Thu Jan 26, 2012 4:23 am

Jerilynn wrote:
stemikger wrote:
Jerilynn wrote:
icedtea wrote:
Jerilynn wrote:"Your age in bonds" is a totally arbitrary number. While it may be a good general guideline for many folks, it's not for me. I am 100% in equities.

With the very low rates nowadays bond funds aren't a good option for many/most people, in my opinion. I don't like Total Bond Fund and don't like the Target Retirement Funds.
How long have you been 100% in stocks? How old are you?

This is an approach that I'm sure few on this forum abide by, but to each his or her own.
I've been 100% in equities since 1995 or so.

How old am I? Why, 39 of course. ;) Actually, I probably have T-shirts older than some of the members of this forum.
Jerilynn,

Your brave, but at 39 you are still young. Now if you stay 100% in equities forever, I would not call you Brave, I'd call you crazy. LOL. But then again, if you have enough to live on and don't need the money go for the gold. LOL.
I do plan to stay 100% equities forever.
Why stay 100 percent equities forever?

Bonds do offer correlation benefits. When putatively "everything goes to 1" correlation wise, they are not talking about bonds, especially TIPS bonds, or treasury nonimals.

bonds do outperfrom stocks sometimes over 30 year periods.

Near retirement, bonds can be what saves your wealth. Take a prolonged downturn/severe recession/depression. Withdrawal stage can be brutal. Dollar cost averageing, so nice in accumulation, works in reverse. You are forced to sell low, locking in loss forever, and you are selling more shares for LESS money, and this is locked in forever. Your average price you receive for shares is below the actual average price of the shares (simple DCA in reverse, there is no free lunch, the DCA "benefit" in accumulation is matched by a DCA penalty in decumulation).

90 stock/10 percent bonds, long term, can expectantly beat 100 percent stocks returnwise expectantly.

there is little reason, even being aggressive, not to have some bonds if one has a moderate portfolio built up in accumulation.

In or near decumulation, bonds can simply save your finncial .ss Return of principle, versus return on principle, is sometimes brutally key.

"The Great Depression: A Diary" Roth

That is kind of a neat "book" actually a financial diary, written by a lawyer (who likely would be a boglehead) during/through the great depression. Gives great perspective. If you want to stay 100 percent stocks, no bonds (sans any big trust fund, or sans being 100 million net worth such that it may not matter per se with appropriate lifestyle) for your entire financial existance, i would give it a read if you have not already.

User avatar
Kevin M
Posts: 10205
Joined: Mon Jun 29, 2009 3:24 pm
Contact:

Re: Do you hold your age in bonds?

Post by Kevin M » Thu Jan 26, 2012 5:23 am

No. While I think age-in-bonds is an OK starting point for thinking about it, I like using the "willingness, ability and need to take risk" framework to flesh out my equity/fixed income allocation.

My need to take risk allows for a much lower allocation to bonds than my age, and my willingness to take risk doesn't support going much higher. My ability to take risk is higher than need or willingness, but I go with the lower of the three.
Wiki ||.......|| Suggested format for Asking Portfolio Questions (edit original post)

User avatar
SpringMan
Posts: 5361
Joined: Wed Mar 21, 2007 11:32 am
Location: Michigan

Re: Do you hold your age in bonds?

Post by SpringMan » Thu Jan 26, 2012 6:21 am

Currently 43/57 and age 64 which is age-7 in bonds.
Best Wishes, SpringMan

Post Reply