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Originally Posted by Becca9800
See that's how ignorant I am, I don't even use the correct verbiage. I lumped it all as 'in the stock market'. I have to admit that I'm embarrassed. My aggressive retirement portfolio is 46.77% bonds, 27.47% stocks and 25.76% cash/stable value. Given that new info, what say you? Am I on a stable path to preserve my savings?
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An allocation such as yours would not be called an AGGRESSIVE Portfolio, regardless of your age. If, as you say, this is your complete savings (save perhaps your house), it might actually be called too conservative. An "old" rule of thumb had a 60% stock / 40% bond allocation for retirees, others had percentages based upon your age... eg if you were 70, maybe only 30% stocks, 80 - 20% STOCKS.. But that was when you could get a decent amount of interest on fixed income investments (bond like) and also do something called Laddered CDs, whereby you could also get a decent amount of interest by purchasing bank certificates of deposit with varying maturities.
Are you currently protected on the downside ? Yes.. Let's say this account is today worth $ 100,000. (The numbers are the same with $1 million or 10million). That means you have $27,500 invested in stocks. If the stock market totally crashed and went down 50%, your account value would "only" be down $ 13,750, since the bulk of it isnt affected by stock market turbulence. If anything, however, you can be a victim of inflation, as neither your bonds nor your cash . stable value yield much more than zero. If we do have a surge in inflation, your bond portfolio would most likely go down as well, as interest rates would rise, causing bond prices to fall. You might want to consider a "fee only" financial planner.. someone that IS NOT a stock broker that can assess your financial situation.. eg current course and speed, will you outlive your portfolio (bad) or will your portfolio outlive you (better). They will be able to put your spending and savings into perspective so that you will be able to Sleep well at night (SWAN) knowing that your financial affairs are in good order.