Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote: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.
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.
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.
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.
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. 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.