Feb 27, 2019
This week we’re talking about investing in bonds.
Bonds will likely be a critical component for your investment portfolio in retirement, so this week I’m sharing with you what I’ve learned from working with clients over the last 11 years, and through that, buying and selling upwards of $100 million dollars worth of bonds over that time.
Today, let’s talk about how much of your portfolio should actually be invested in bonds. The answer to that depends.
It’s a delicate balance - too much in bonds could hamper your growth potential, and too little in bonds could cause you to panic and sell when your portfolio drops in the next market downturn.
Owning bonds is like the story of Goldilocks and the 3 bears - not too much, not too little. We want a bond portfolio that is just right.
And just right could be anywhere from 40% in bonds to 70% in bonds in retirement. That’s the range we typically recommend for clients.
If you want to know the mix of bonds that we recommend for our clients by age, you can email me and I will send you our age-based asset allocation cheat sheet. It’s a guide to what your stock and bond mix should be for your age in 5 year increments, and it’s the foundation that we use to determine stock and bond percentages for our clients. There are other factors to consider other than age, but this guide gives you some specific guidelines and is a great place to start.
Just shoot me an email - ashleym@truenorthra.com. That’s a-s-h-l-e-y-m@truenorthra.com and I’ll send you your free age-based asset allocation cheat sheet, to help you determine the right mix of stocks and bonds for your portfolio.
That’s it for today! Thanks for listening. Tomorrow we’re going to talk about the top 3 bond investing mistakes that I see people make over and over again.
My name is Ashley Micciche and this is the One Minute Retirement Tip.
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