Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next
Author: TwoCybers 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 19483  
Subject: Re: Retirement Portfolio Strategy Date: 2/4/2003 8:05 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
You know your needs, resources and priorities better then anyone. That said from my view point setting asside 10 years worth of fixed income is very, very conservative. Today things look very dark, but my gut tells me that within 5 years inflation will be a noticable (if not greater) event.

Are your fixed income investments structured in a way that 8 or 9 years out, your income could climb with inflation if moderate inflation develops? For example if we experience 3% inflation for 6 years, each after tax dollar will be worth $0.83 - add some tax increases for government spending to cover their inflation costs and it is real easy to see the purchasing power in the 70 cent range.

If you decrease the number of years from 10 to a smaller number, you reduce this inflation risk, but obviously increase the market falling risk. (My gut tells me people will be more careful about market falls then inflation - inflation has not been a big issue since the late 70s.)

On the other hand you certainly have a system that can run on autopilot.

Gordon
Atlanta

Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next

Announcements

Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
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:
Macro Economics

Looking at Currency Ratios
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 "#1 Media Company to Work For" (BusinessInsider 2011)! 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.
Advertisement