Post by steelpony10 on Aug 23, 2021 16:07:53 GMT
I have a question for the B and H crowd. How far are you willing to watch interest rate increases erode your bond AA? I never owned any bonds until 4 years ago (64 years of age) before redoing my AA for retirement. 4 years later I do not own any of the funds I started with. I am finding or feel that some form of trading is required to manage bond funds. This is not about performance chasing for me. Is anyone else facing this problem? I read a lot about retirement AA and it seems the norm is to buy an IT core fund and hold on to it. I can look at charts all day long and see that long term (2 years) bond funds grow as equities do. Am I lost in the bond OEF maze and over thinking AA?
edit: first post of my new rank.
Just an observation so don’t tase me bro but fixed allocations, rigid percentages, rules have made you a puppet on a string. Simple follow the smart money which is growth at the present time (since the 80’s-90’s) and use your bond section or cash as a reserve because you don’t want to invest more in equities, a reason, and forget about it. Think sections and future cash flow or spend down and why you need that much not a made up percentage. Our muni is fairly large as well as unproductive cash because I believe we’re set so we stopped investing, a reason.