Taking refuge in CDs, bonds, etc instead of stocks just insures that many, especially those that live into their late 80's and beyond will be eking out the end of their retirement savings on fumes.
If you retire at 70 and expect to live to 85 that is still a 15 year span, plenty of time to take a hit in the stock market and recover. I just passed the "red zone" and added 10% to my stocks and now at 70/30.
I'm w mj's thinking 1000%.
we just passed our red zone too and run about 50% equities.
i also am experimenting with two risk parity portfolios for future use as core positions besides our regular portfolios
one is called the carolina reaper and its a leveraged risk parity model .
it gives the returns of a 60/40 or better but with a sharpe ratio that indicates way better reward for the risk then a 60/40.
it consists of
20% upro a 3x leveraged stock fund
13% tyd a 3x leveraged bond fund
67% dbmf a managed futures etf that provides risk parity .
i am blown away by the performance since 2019 thru the covid drop and the disaster to markets in 2022 compared to a traditional 60/40
the other is called the all terrain portfolio
it is not a true risk. parity portfolio but it is pretty conservative and diversifted . just started this one a week ago so it’s brand new .
i already owned the bitcoin , gold and commodities as well as cash so it was easy to add a world stock and bond market .
the funds shown are canadian funds so i switched them to etfs we have here in america
