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the bad part is that so many seniors are going to be pushed in these funds in to being so bond heavy regardless of what is happening to rates that as rates on bonds normalize they will freak .
no one in my generation (baby boomer ) has ever been in a real bear bond market . except for some bumps along the way we have had a 40 year run in bonds .
when those statements start showing more significant losses they will panic .
you can't close your eyes totally to the world and go strictly by age
Hopefully those seniors who happen to have their investment monies professionally managed (like my 87 yr old mother does) will have good and active advisers who make the proper moves out of bond funds. I talk to my mother's investment adviser 2 or 3 times a year and try to meet up with him for lunch when I visit. They also send out a monthly newsletter which I'm subscribed to (it's quite good and informative).
the bad part is that so many seniors are going to be pushed in these funds in to being so bond heavy regardless of what is happening to rates that as rates on bonds normalize they will freak .
no one in my generation (baby boomer ) has ever been in a real bear bond market . except for some bumps along the way we have had a 40 year run in bonds .
when those statements start showing more significant losses they will panic .
you can't close your eyes totally to the world and go strictly by age
I believe you said you were like 40-50% bonds now, correct? Are you not concerrned about the bond forecast? What is the alternative when trying to balance with equities?
correct, i think i am 40/50/10 cash roughly since i just put 2 years spending money in to the accounts for the new year as well as an emergency fund .
but the bonds range from intermediate to short and are not all interest rate sensitive . as i said i stay dynamic and will eventually shift to other things if conventional bonds falter . you have lots of options like floating rate bonds , commodity linked bonds , unconstrained bond funds that can short , TIPS if inflation heads up with rates , reit income funds , etc .
if stocks fall enough i may increase equity's as well and use a cash position to temper volatility . that is the beauty of staying flexible and not have written in to stone the allocations you use , .
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