Skip to main content
No. of Recommendations: 2
So it makes sense to have some volatility mitigation during the drawdown phase, and a bond allocation is one of the ways to do that.

Bonds are not as "less volatile" as one thinks. Plus, you have the 30-40 year bond bull market from the high inflation of the 80s which skews the numbers. Back in '08/'09 crash, all assets (stocks/bonds/commodities) had a correlation of near 1 and EVERYTHING went down.

Here is a good paper about getting S&P returns but 1/2 the volatility with a mix of 5 ETFs. I used this for several years until I changed my retirement philosophy towards living off stock dividends as well as rental property income. My returns during that time were what the article advertised.

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=962461

JLC
Print the post  

Announcements

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.