No. of Recommendations: 1
43% fixed income
I would guess that they'll come to strongly regret this high of an allocation to fixed income, when interest rates (eventually) go up.


You're correct if you assume that it is in US Treasuries or local CDs.

FWIW, DW and I have been looking at foreign bonds and CDs. Buying individual bonds are difficult unless you have a few million $ (Fidelity has a $100k minimum per position). But Brazillian 1 year bonds are yielding 12% interest (Brazil's inflation rate is 6%) and Australlian 1 year bonds are about 4.5%.

The easiest option that I've found is to hold foreign currency CDs at Everbank.com .

Yes you have the threat of a currency devaluation against the dollar, but looking back over the past 10 years, there are plenty of currencies that have been consistantly and gradually increasing against the dollar.

JLC
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