if you are close to retirement you’re not supposed to be invested in volatile instruments. you are supposed to be invested in things like bonds that don’t change all that much. The idea is that you buy bonds that have a guaranteed return in a timeframe. Then your money(value) very slowing increases over that timeframe without the risk of loss. Higher risk investment vehicles are used early in your career so that their volatility can work in your favor and any\or losses you incur can be made up before you need that money to survive. If you or your financial advisor have not steered your retirement funds in this direction then the fault lies with you or the advisor, not the retards we have running the government.
“if you are close to retirement you’re not supposed to be invested in volatile instruments.”
Invest in bonds and due to inflation you will be broke in 20 years.
that’s sound advice in normal times, have you checked the price of bonds recently ?? Since interest rates and bond prices move in the opposite direction people who own bonds have been crushed in the last few months, there is no safe haven in today’s market, everyone is getting crushed.
It's actually all in the allocation ratio. Most people starting retirement will want to still have some growth as the typical retirement length is nearing 20 years. If you go too conservative, you risk running out of money if you live too long.
A simplistic rule of thumb is to subtract your age from 100 and that is your allocation between stocks and safer assets like bonds. So the average 60 year old should have 40% in stocks. With a lot of diversification of course, such as S&P 500 based funds.
Now if you have millions saved up and can comfortably live off the interest on bonds and whatnot, all the power to you. That might be the safest way to go in that situation. But most of us need some growth even during retirement years.
NicoDon wrote: “If you or your financial advisor have not steered your retirement funds in this direction then the fault lies with you or the advisor, not the retards we have running the government.”
All good advice but Bond Funds do not behave like Bonds. Bonds, if held to maturity, are guaranteed to give back your principal. Bond funds do not have this feature.
“Safe” bonds have had very poor returns the last few years, and with the Fed jacking iterest rates, there will be a loss of principal unless held to maturity. And since folks tend to invest in bond funds instead of buying individual issues these days, those losses will be realized.
There are no safe investments with Klaus Schwab and his minions running things.