UnThreaded | Threaded | Whole Thread (7) | Ignore Thread Prev | Next
Author: JLC Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 77549  
Subject: Re: I am a late starter.... Date: 1/6/2002 9:28 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
<<<You would even cut out the 15% I put into the Bond Index Fund????? >>>

Yes, for two reasons. One, over time equities do better than bonds. Time being greater than 10 years and since we're talking retirement, I'm assuming greater than 10 years. Two, bonds (and bond funds) can be and are just as volitile as equities. Given that, re-read reason one.

I am assuming that you've got the basic steps coverd, i.e., you have an emergency fund of cash. That would be 3-6 months worth of living expenses. And you are eliminating debt, especially credit cards. These things need to be taken care of before we debate investing.

As a footnote. When you get closer to retirement, that's when you start taking some money out of equities and put into cash, about 5 years worth. Decreases volatility and it lets you know how much you have to spend.

Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (7) | Ignore Thread Prev | Next


The Retire Early Home Page
Discussion on accelerating retirement day.
Kiddie Card Board
Should kids have their own credit card?
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.
Post of the Day:
Berkshire Hathaway

Taking Candy From Strangers
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.