Skip to main content
No. of Recommendations: 0
FWIW, I don't particularly like the rule-of-thumb that says your bond allocation should increase each year

FWIW - I agree!

Other factors such as your current position, investing goals, and the market primarily dictate asset allocation.

Current Position Investing Goals Market
Retired - $10MM net, $50,000/yr Exps, 7.5% UST 10 yr
(conservative type)


Working - $10 net, to retire one day*, 3% UST 10 yr
(*exps in some horizon, can fully fund 401(k), non conservative type)

Both the same age...and you can pick the age but then justify the same bond allocation for both! Does taht work for all ages?

Age can play a factor in risk tolerance but really is a small driver for asset allocation. And there are more than two asset classes which did not all correlate to one when the SHTF!

My bond allocation will start mechanically increasing this summer after QE2 ends.

Does it matter what rates are doing - have done etc.?
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!
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.
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.