Would it help to know that 70/30 has had the highest success rate in decumulation and that putting more into the money market market is very likely to make things worse?I have read many times to reduce risk to the point that you can sleep at night. So how would I do that?
I am currently about 50/50 stocks/bond funds with an emergency fund in a money market ETF. Would I sell some of my current holdings and put it into the money market fund?
I am retired, working part time, haven't started SS yet.
Ever increasing amounts of fixed income do not increase safety.
The popular option here is forming a ladder of real income with TIPS and/or I-Bonds. This typically ignores the fact that longevity risk with the ladder in not buying enough rungs is bigger than the risk of portfolio failure without the ladder.
You reduce risk by keeping your current portfolio and not making things worse. You can of course reduce anxiety while increasing risk through buying as much money market as you desire to further lower volatility. That's a viable option if you can afford to do so.
Statistics: Posted by abc132 — Sun Dec 17, 2023 12:09 am — Replies 22 — Views 2478
