Skip to main content
No. of Recommendations: 0
<<<Seen articles (net and magazine) that says when you start out invest in growth and stock funds (your young, take the risk)and as you get older shift toward bond funds or just bonds and less on stock funds.(as you get older, secure your money) but one thing that is never clear to me is how.>>>

Don't fall into the trap of thinking that bonds/bond funds are safe/safer. You can loose your money just as easily in bonds as in stocks. Just try selling a bond in a rising interest rate climate!

To keep things simple as you near retirement, keep about 5 years living expenses in CDs, the rest in stocks. At the end of each year, sell enough stocks for another year of living. You still need stocks to fight inflation, the more so if you retire early or have a history of family longevity.

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.