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My age in bonds?

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    My age in bonds?

    A lot of bogleheads recommend a person keep their age in bonds. It seems pretty conservative to me. However, I'm 25. I've only been investing heavily in the good times. I've never really seen a major market crash. In 2008, I didn't have too much invested.

    So is 'my age in bonds' a good rule or do you think it's overly conservative. The money I have invested, I don't plan to use for decades..

    #2
    Originally posted by ExcuseMyIgnorance View Post
    A lot of bogleheads recommend a person keep their age in bonds. It seems pretty conservative to me. However, I'm 25. I've only been investing heavily in the good times. I've never really seen a major market crash. In 2008, I didn't have too much invested.

    So is 'my age in bonds' a good rule or do you think it's overly conservative. The money I have invested, I don't plan to use for decades..
    Only you can say what is appropriate for you. It's not a bad rule, but neither are 110 - age in bonds or 120 - age in bonds.

    I'm 48 and have 25% in bonds. I intend to stay with this until about age 55 or so, then shift to 40% in bonds.

    Vanguard's target retirement funds are about 10% in bonds all through one's 20s and 30s (assuming your target date is the year you turn 65).

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      #3
      It's just a rule of thumb. You may want to adjust it for your personal situation.

      I was 100% equities until my 40s, but I would not recommend that. Many folks over at bogleheads skew toward 110 or 120 - age.

      I would suggest at least 10% bonds, for rebalancing purposes.

      Edited to add - if your balance is small ("small" is in the eye of the beholder; I would personally use $50K as the cutoff), you may just want to go 100% equities for now, if you are certain you won't panic sell when markets fall.
      Last edited by feh; 07-15-2015, 05:40 AM.
      seek knowledge, not answers
      personal finance

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        #4
        Re:My age in bonds

        I am with you, this is just for personnel satisfaction.

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          #5
          I think the whole age thing for your bond% is a little off, but I may be a little risky. I am 27 with 5% bonds. Again I am risky because I know I am still young and can afford to be aggressive.

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            #6
            The Bogleheads also say you may need a smaller percentage if you have a defined pension. Between the pension and SSec, we are not very invested in bonds, and we're OK with that.

            Once I'm within 3 years of retirement, we'll start adjusting to more bonds in the portfolio.

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              #7
              Thank you, everyone. I believe that since I don't have a massive amount of my net worth tied up in intangible asssets (bonds, equities, etc.) I am comfortable forgoing bonds altogether. A massive market swing will change my day-to-day life in no way. I also own some farm land which has an inverse correlation with the stock market. I can use that for my bonds, I figure. Sound good?

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