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I have just turned 60 this year and retired late last year.

I just had to make this same choice with 401K funds and I have settled on around 50% with the other 50% in Bonds/CD's

Of the 50% in stock it will be 90% Foolish 4 and 10% growth (small caps) just to make it exciting.


I turned 60 July 1, and have been retired for about 10 years due to early retirement program (downsizing, or whatever you want to call it).

I am really surprised by the timidity of people (are they so easily swayed by portfolio allocators?). It is not at all clear to me that purchasing bonds is a conservative thing to do. You may conserve the face value of your money, but when allowing for inflation, treasury bonds do not seem to appreciate at all. At least with an S&P 500 index fund, you get 10.7% annualized (before taxes and inflation) in the long run, which is better than I have ever seen from bonds.

I have about 5% of my money in Series EE savings bonds that I will probably cash in as they mature. I have about 2.5% bullion grade gold coins in case the financial system collapses, and 2.5% in a Swiss Franc denominated Annuity. That is all the conservativeness I have and am concerned that this fear of economic collapse may be wasting me the time-value of that 10% of my portfolio. I consider that opportunity cost to be an insurance premium, but I would never put 50% of my money that way. Even my mother is not 50% in bonds.
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