Discussion

Jeff from NJ posted over 2 years ago:

While it may generally be true that older (retired) individuals typically lean heavily upon fixed income investments, the current interest rate environment will likely drive this cohort towards riskier (dividend paying) assets (or emerging markets fixed income). The wildcard would seem to be how long it will be before U.S. inflation and interest rates move significantly higher.


Dave from WA posted over 2 years ago:

I guess I am one of those boomer (soon to be retired) types, but I am not sure I agree that all dividend paying stocks are riskier than bonds. In my opinion, bonds are "orders of magnitudes" more riskier than bonds, unless of course you believe that interest rates can stay where they are over the next 5-10 years. That is why my bond exposure right now is miniscule. Mainly because in retirement if you ever needed to sell those bonds over the next 5-10 years you would most likely be selling them at a loss, which is not really going to help the already minute interest that they are paying.


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