Is it true as you get older (I am 70) that your allocations should be adjusted to reflect 70% in bonds and 30% in stocks to assure some growth while maintaining funds securely in bonds? I presently have 52% stocks and 48% bonds. I am retired.

Terry Says:

NO, it is absolutely NOT true!

You can lose as much mo year in bonds as stocks. When interest rates rise, bond prices fall!  At these levels, there is a much greater chance that rates will rise during your lifetime than that they will fall!

What about the third category, “chicken money” — short term CDs and Treasury bills, whereyou wont get rich but you won’t get poor?

You need some professional asset allocation advice, consistent with your personal circumstances.  Get it from someone who is not trying to sell you something — a fee-only financial planner. Go to www.feeonly.org to search.

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