Reply to WHO is pulling all of their money out of the stock market?

Forum Index » Money and Finances

Reply to "WHO is pulling all of their money out of the stock market?"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Is this a time to increase the proportion of stocks I buy with my 401K contributions (vs bonds)?  had reduced that proportion because I hope to retire in 4 years.[/quote]

What % of bonds are you holding now? It is definitely a good buying opportunity as far as stocks are concerned, but you need to be in a position to withstand the volatility. I personally think it's a good way to mitigate the damage that your portfolio has suffered. [/quote]

I have all mutual funds. About half of those are in equities. The rest of the mix is annuity, some bonds, a little real estate. But half equities. [/quote]

Sound like you are actually doing pretty good. It doesn't sound like your portfolio is overly conservative. Maybe a little? If the percentage of stocks to bonds is around 75% stocks and 25% bonds, then that is a really good place to be for most people. [b]When you have bonds that lean towards 50% of your portfolio, you really get hammered by inflation in the long run. Look up the Trinity study chart and you will see what I mean.[/b] For people who have a screwed up asset allocation prior to this debacle, this could be a good time to buy stocks while prices are low. I would also recommend checking out bogleheads forum before doing anything crazy. My father uses a well known and highly successful investment advisor, and I swear that bogleheads gives much better advice.[/quote]

Source? My understanding is that the Trinity Study showed that a 50/50 portfolio is pretty robust to inflation. Compare standard retirement probability of success 4% withdrawal rate for 30 years for a 100/0 and a 50/50.
[img]https://www.physicianonfire.com/wp-content/uploads/2017/09/ERN-SWR.png[/img][/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics