KP, Good for you! That's the right way to begin; take some risks in the early part of your work life, then reduce the risk in equities to bond and cash a few years before retirement. That's exactly what we did, and we've been saved from the blood-bath many suffered during the past four years. c.i.
NH, Long-term for some can be 30 years or five years. It depends how old you are before retirement. For us, long-term is five years, because I'm now 67 - going on 68 this summer. c.i.
New Haven, You're heavily loaded on bonds and with the latest price hits on bonds, and yields expected to go higher, what's your opinon on the best moves for today (next couple of weeks)?
The pundits have a rule of thumb that the percentage of your investments in bonds should be your age, with the balance in stocks.
So if you are 55, then 55% should be in bonds, and 45% in stock.
With interest rates widely expected to be going up soon, you may wish to postpone any new bond purchases for awhile.
Parnassus Equity Income (PRBLX)
Jim, I know what the pundits are saying; I've kept track of their recommendations for most of my adult life. The only suggestion I've followed in our investments is "diversify," and we've done pretty well. We didn't lose anything in the late-90's bubble, and we continue to gain in our retirement investments even though I continue to withdraw funds for my "living" expenses. Our current mix, as of April 30 is 48% cash and annuities, 33% bonds, and 29% equities. We're still ahead for this year if I add back my withdrawals, but ahead by $75K since one year ago. Not bad for an old codger like me.
