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

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[quote=Anonymous][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]

Yes, 50/50 is fairly robust. Look at the 4% withdrawal rate and you will see that 75% equity portfolio has a higher probability of success than 50/50 portfolio. Also, there are two trinity studies. One of them used corporate bonds and the other used intermediate treasuries, IIRC. Many are forecasting that yields on both will be lower in the future. [/quote]

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