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Retirement Discussions / Retired Fools
|Subject: Re: How about some topics?||Date: 9/27/1998 2:55 PM|
|Author: rjm1||Number: 64 of 19643|
I am concerned about the question of ALLOCATIONS of
of "Nest egg funds." Does the old rule of thumb
"take your age (e.g., 60) and put that into "safe"
investments (i.e., 60% in Bonds plus Money Market),and with the
remaining funds (in this e.g. 40%)
As with any generalization it is a good place to start your thinking. If you are afraid of stocks the rule might help you see that you need stocks even as you get older.
However, if you retire early and or have good health your money has to work may more years. I think the rule is outdated and you need more in stocks. Remember when it comes to life expectancey, the numbers in the tables are the average. Than means 50% of the people out live the table. You need stocks to maintain your standard of living.
Your total assets and income needs are also important. The more assets you have in relation to your income needs the more you can put in stocks.
By the way, you can count a pension as part of the bond investment when figuring asset allocations. Same with Social Security.
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