Re:Yield curve is blaring loudest recession warning since 2007
by MrMember on Monday August 05, 2019 @02:19PM
(#20616738)
If you're still invested in something that can lose 50% of its value when you're retired, you should rethink your investments.
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Re:Yield curve is blaring loudest recession warning since 2007
by throw0101a on Monday August 05, 2019 @03:12PM
(#20617547)
You're not wrong, but it's a matter of balancing risk, which is the point of having an allocation towards equities (stocks) and fixed income (bonds).
Recoveries have generally take up to 2-3 years, so if you have that much of your portfolio in cash and GICs, you can weather a downturn without having to touch your equities:
* https://www.myownadvisor.ca/cash-wedge-opening-investment-ta...
One suggestion, which is not popular, is to take a portion of your retirement savings and buy an annuity: enough to cover your day-to-day expenses. This way, regardless of what your invested portfolio is doing, food and shelter (rent/property taxes) are covered. You would consider the annuity as part of your fixed-income ("bond") portion of your portfolio.