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> the problem with equities or bonds alone is that even with a good allocation it's hard to protect yourself completely from retiring into a recession I've nev
by stevesimmons 4y ago
> the problem with equities or bonds alone is that even with a good allocation it's hard to protect yourself completely from retiring into a recession
I've never understood this logic... Even if I retire in a recession, I only draw down say 5% of my equities each year. Recession lasts say two years. So only 10% of my holding is liquidated when valuations are low.
- endisneigh 4y agoa good portfolio will be liquidated from equities to bonds as you get older. if there is a recession while this process is happening you both reduce your holdings and are at risk. not to mention that there's no guarantee that it will ever go back to what it was.