Liza1948
New Member
I have an annual meeting with my financial advisor this week. I'm a retired librarian and a widow, but prior to becoming a librarian I worked for an investment firm focusing on fixed income (I left in the late 1980s, my late 40s, to focus on my family and my true love which is reading).
Anyway, I have a 7 figure investment portfolio that is currently invested 55 percent fixed income (largely Treasuries, but also a small amount of highly rated corporates and some municipals) with the remainder largely in equities. Because equity markets have increased double digits for the last three years in a row, I am thinking there is a a strong possibility for correction and as it is I'm over balanced on equities anyway given my age.
The problem I have is if I were to sell off like 1/3 of my exposure to equities, fixed income is so expensive these days it may not make sense, and in cimbination with a potential (if not certain) increase in interest rates this year I am concerned about over paying for fixed income right now. On the other hand, since I am largely a HTM investor for FI then it shouldn't really matter. The alternative is I could put the proceeds in cash-like investments but then I'm exposed to inflation which in US dollars was 6 percent last year.
For the record, I don't have any debt, I own my house outright, my income is from my pension and my late-hudband's pension, and SS.
So, I'm a little hesitant about maintaining such relatively high level to equities but am nervous about taking gains. Any advice is welcome.
Anyway, I have a 7 figure investment portfolio that is currently invested 55 percent fixed income (largely Treasuries, but also a small amount of highly rated corporates and some municipals) with the remainder largely in equities. Because equity markets have increased double digits for the last three years in a row, I am thinking there is a a strong possibility for correction and as it is I'm over balanced on equities anyway given my age.
The problem I have is if I were to sell off like 1/3 of my exposure to equities, fixed income is so expensive these days it may not make sense, and in cimbination with a potential (if not certain) increase in interest rates this year I am concerned about over paying for fixed income right now. On the other hand, since I am largely a HTM investor for FI then it shouldn't really matter. The alternative is I could put the proceeds in cash-like investments but then I'm exposed to inflation which in US dollars was 6 percent last year.
For the record, I don't have any debt, I own my house outright, my income is from my pension and my late-hudband's pension, and SS.
So, I'm a little hesitant about maintaining such relatively high level to equities but am nervous about taking gains. Any advice is welcome.