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Isn’t it suggested to wean off equities as one nears retirement age? Isn’t it done automatically by pension funds? I’m from India where the government owned ret
by vishnugupta 7y ago
Isn’t it suggested to wean off equities as one nears retirement age? Isn’t it done automatically by pension funds? I’m from India where the government owned retirement fund (EPF) is only now testing equity waters and the recent fund (NPS) isn’t big enough to cause damage so I’m not aware of how this works.
- awb 7y agoI've heard the following advice: Hold a % of bonds equal to the % of life you've lived and a % of stocks equal to the % of life you have left. Ex. If you're 40 and think you'll live to 100, try to hold 40% bonds and 60% stocks.
- ggambetta 7y agoAn even simpler and mostly equivalent formulation is the "your age in bonds" rule of thumb.
- vishnugupta 7y agoThe version I’ve heard is “equity share of your investments == life expectancy - current age”
- smallgovt 7y agoYes, but pretty much all asset classes are getting hammered except gold.