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Monday, May 27, 2013

Free Money Finance - Tips for Investing when you reach golden age


The problem when you invest, without a financial planner/advisor is the right mix for your assets.  This is the right article, guide for you.

 

Free Money Finance


Posted: 16 May 2013 01:29 AM PDT
I'm approaching 50 years old. I remember when my mom became 50 and I thought "Man, she's old." :)
Anyway, CNN Money ran a series on "Best Moves if You're _____ Years Old." This one is the piece for those 45 to 54 years old and contains a target investment mix at age 50 as follows:
  • 39% U.S. Stocks
  • 40% Bonds
  • 21% Foreign Stocks
I get the U.S. and foreign stocks, but does anyone else think the bond amount is too high of a percentage? I do, for two reasons:
  • If you're 50, you still have 30 years or so left to live. Having 40% invested in bonds seems way too conservative.
  • Does anyone else think bonds HAVE to tank big-time somewhere in the future? Interest rates will have to go up, won't they? And when they do, bonds will get killed. Or am I missing something?
Sometime in the future I'll be sharing a post on my specific asset allocation (there's a lot of movement now with me selling some funds to buy real estate holdings), but one tidbit I can give you is that I just sold a large portion of my bond holdings because I thought I was over-weighted in them. The reason? Exactly the ones I stated above.
So, what's your take on this issue?

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