No. of Recommendations: 0
We will retire in 4 months...85% of retirement funds are in a Growth Dividend fund, 15% in tech stocks. Over the past 5 years we have done EXTREMELY well, and are very happy with the results...but now on to the future of a fixed income, ..ah...What to do, what to do....Do we leave it all there, expecting the normal ups and downs, (the downs affecting our confidence considerably) or do we place 85% of it in tax free triple A insured Bonds??? Any advice??

I'd think that 85% in AAA bonds would be a little drastic. Of course, if you have enough retirement assets to generate sufficient income and growth above inflation with 85% bonds...

I'm assuming that you plan on living in retirement for 20-30 years or more. If that's the case, it's quite reasonable to be invested mostly (or even fully) in stocks. Many people suggest cushioning the volitility of this sort of portfolio by holding 3-5 years worth of money in cash (CD's or money market). In good years, you can draw from the stock portfolio to replenish the cash-- in bad years, you withdraw nothing.
Print the post  


The Retire Early Home Page
Discussion on accelerating retirement day.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.