No. of Recommendations: 2
Does this idea seem reasonable for someone my age?

I am making a lot of assumptions, but my feeling is your plan does not make any sense period - age not an issue in my view.

Your distribution of investments looks very much like a list from Money magazine or some other "expert".

Before you discount what I said, ask yourself this question. Is there any difference between a Target fund from Vanguard vs Fidelity vs T Price Rowe. If you look at these funds investment distribution and the risk and projected returns of those investments you will find large differences. Which is best for your situation? Last time I did this I found the non USA investments similar, but some funds where in Europe (a mature market not unlike the USA) and others were in developing markets which have very different issues.

If you are looking out 20 years, I have a serious issue with any Bond fund whose perspective does not allow holding bonds to maturity - Interest rate will rise and when they do bond values will drop. A mutual funds whose governing documents force sale of bonds at some time frame measured beyond 12 months are almost certain to force a loss of principle.

This is a time to have a long hard look at Asset allocation well beyond the idea of bonds and stocks. You need consider at a minimum the effect of change interest rates. The effects of a gradual change in the 10 year bond to the historic average will be very different than a less gradual change to say a couple of percent beyond the historical average. (Ten year rates are close to 30 year mortgage rates which as you know today are low.) Investing for retirement is not about seeing the pile of money increase every year with no down years. It should be about having adequate funds when you retire to live the life style you choose.

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
Live Video Event Monday!
The GP team is hosting a live video event on Monday at 4 p.m. ET. Don't worry if you can't make it — we'll have a replay and a transcript. Click for more!
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.
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.