Quote:
Originally Posted by 44Apple
At what point should one change from being an investor to a "saver"?
I've been retired a number of years and have invested all my adult life. Luckily, we have enough non-investment money to live on.
I now wonder if I should gradually begin selling my ETFs, Mutuals, and stocks and move all the money into fixed income.
I know the outcome will be lower and stable, but I won't have to deal with the daily ups and downs.
I'm familiar with the 60/40 rule but wonder if I should go 0/100.
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I have always maintained a 40 percent stock, 40 percent bond, and 20 percent cash portfolio. I intended to transfer to 100 percent bonds and CDs when I retired. But, I no longer think that is a good idea because of the Federal Reserve's tight control over interest rates. Their interest rate policy is to punish savers and reward borrowers. So, I have not changed my asset allocation since retiring and I don't intend to. If you can afford to live off of your non-investment income, I think it would be a mistake to go to 100 percent fixed income.