Where should I be investing since I am retiring soon but fear the current US financial crisis will get worse?
Posted by Dolores
Bob asked:
Currently I am 45% US stocks, 15% non US stocks, 20% bonds, 20% cash. I was planning to retire with all debts paid off (including my house) & live off a pension plus a 3% withdraw rate from my investments /year. I worry we could have a stock drop like the Great Depression (stocks dropped 95%) or hyperinflation like Germany in 1920. Where should I move some investments in case the worst case situations occur?
EARL
Currently I am 45% US stocks, 15% non US stocks, 20% bonds, 20% cash. I was planning to retire with all debts paid off (including my house) & live off a pension plus a 3% withdraw rate from my investments /year. I worry we could have a stock drop like the Great Depression (stocks dropped 95%) or hyperinflation like Germany in 1920. Where should I move some investments in case the worst case situations occur?
EARL
February 5th, 2009 at 7:33 pm
How soon is “soon”? If you’re within five years of retirement, your investments should be largely non-stock.