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  • bee July 2014
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Retirement Investing: Are You Doing It All Wrong ?

TedTed
in Fund Discussions
FYI: The intriguing argument by Research Affiliates founder Robert Arnott is that conventional retirement investing gets things precisely backwards.
As Mike Foster of Financial News this week aptly sums it up, Arnott argues investors should own more stocks the older they grow, not fewer, which also means those approaching retirement should cut back their participation in the bond market. He finds that 40-year periods since 1871 generally show his approach yields a superior result — more on those findings in a moment.
Regards,
Ted
http://blogs.barrons.com/focusonfunds/2014/07/16/retirement-investing-are-you-doing-it-all-wrong/tab/print/

Comments

  • beebee
    edited July 2014
    My thought:

    After funding a (pension/social security/annuity income stream) which provides enough income to pay your month bills then,
    - set aside 1-3 years of income and invest conservatively for emergencies, special expenses, and periodic buying opportunities (due to downturns in the markets).

    The remainder of your portfolio:
    Let the rest ride in:
    - a fund like PRWCX (a managed 80/20 fund)...no rebalancing needed or,
    - continue rolling out into the future with retirement dated funds that have an 80/20 make up or,
    - just own individual index funds that provide an 80/20 allocation and rebalance periodically.
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