I understand Boglehead philosophy of asset allocation, however have been reading on Boglehead and many other places which Boglehead follow that current equity market valuations are high and high interest rates and inflation will stay for couple years (nobody know how long).
I am near retirement (thinking or retiring in 2-3 years) and currently my portfolio is a simple one (52% VTI, 23% VXUS, 5% REIT, 15% BND and 10% Money Market Funds). I have never been able to understand the bonds, interest rates and yield etc. so just keep my fixed income part on BND.
Given that I am close to retirement so I am thinking of planning to avoiding the bad sequence of return as well. So given that interest rates are higher than they were couple years back when ged reduced the rates to almost zero, what should be my plan for fixed income given that return on fixed incomes may be good in next 5-10 years? Should not I be keeping a little higher percentage in fixed income given current market scenarios ? (please ignore my very limited knowledge about fixed income options).
I am near retirement (thinking or retiring in 2-3 years) and currently my portfolio is a simple one (52% VTI, 23% VXUS, 5% REIT, 15% BND and 10% Money Market Funds). I have never been able to understand the bonds, interest rates and yield etc. so just keep my fixed income part on BND.
Given that I am close to retirement so I am thinking of planning to avoiding the bad sequence of return as well. So given that interest rates are higher than they were couple years back when ged reduced the rates to almost zero, what should be my plan for fixed income given that return on fixed incomes may be good in next 5-10 years? Should not I be keeping a little higher percentage in fixed income given current market scenarios ? (please ignore my very limited knowledge about fixed income options).
Statistics: Posted by InvestVS — Mon Apr 15, 2024 1:56 pm — Replies 0 — Views 125