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Author: DeltaOne81 Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76397  
Subject: Re: Bank-loan Funds Date: 6/9/2007 12:45 PM
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At 66 yrs, I don't exactly want to weather out a global bubble burst which I tend to think is probable.

It depends when you expect to retire (or if you are already?), but it sounds to me like you may be in too aggressive investments for your comfort level at this point in your life. Since this is likely money that you will expect to tap in less than 10 years (and possible less than 5) a good amount of it should start to be in more conservative investments, including cash and bonds.

You shouldn't be worrying about a global bust because you should be aware that you have at least the money you'll need for the next 10 years or so in investments that won't be affected by it.

For instance, lets say you plan to retire in 2 years, and will need about $20K per year beyond social security and any pension, annuity, etc. Then you should probably have 8 * 20 = $160K in some form of cash, bonds, CDs, etc. That way you can know that even if everything went to heck today, you'd have until 2017 before it made a lick of difference to you.

The numbers are very approximate but server to illustrate the point. You're at the stage where you should be worried less about spreading risk around various risky areas, and more concerned about having enough in safe areas that you're comfortable sleeping at night.
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