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A 401k should mostly be bonds and cash equivalents when you retire.
by sjg007 7y ago
A 401k should mostly be bonds and cash equivalents when you retire.
- vkou 7y agoAnd if the recession hit a few years before you retire, your portfolio will never get a chance to recover from that hit. Your 20 years of runway becomes 12.
- sjg007 7y agoI mean you can move the goal posts here... yes a 401k is risky.
- vkou 7y agoI can fudge the numbers a bit - but you only get one shot at this sort of thing, though, and you can't predict the future. You either take risk with your 401K, or you keep too much of it in bonds, and lose it all to inflation. Thanks to that, a fixed benefit pension as part of your retirement strategy is much more fiscally responsible than going all in on either a 401K, or a pension.