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When to move from aggressive to fixed rate?

Discussion in 'Money Talk$' started by SaggyWoman, Aug 22, 2007.

  1. SaggyWoman

    SaggyWoman Active Member

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    When is the best time to move one's retirement funding invested from highly agressive to a fixed rate of building?
     
  2. KenH

    KenH Active Member

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    My opinion: On a long term basis - as one gets closer to retirement.
     
  3. SaggyWoman

    SaggyWoman Active Member

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    But how close to retirement?
     
  4. KenH

    KenH Active Member

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    I would say if a big dip in the value of your investments would impact your retirement plans it would be time to think about moving to something safer.
     
  5. webdog

    webdog Active Member

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    I think it also depends on the amount invested. Each situation is different, so there is no clear cut rule of thumb.
     
  6. ReformedBaptist

    ReformedBaptist Well-Known Member

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    That makes sense.

    Without knowing your complete financial picture it would be difficult to say. A sound financial plan should be put together by a professional who knows your financial situation, income, liabilities, et. and understandings your family's financial goals. You don't want to consult with an advisor who may only be selling a couple types of products, like annuities and mutual funds only. You want someone that is practicing full wealth managment. They should be able to help you plan in every area of the financial planning process. This including the managment of risk, investment planning, tax planning, retirement planning, and estate planning.

    Search for an advisor that has achieved the CFP designation and has been in the business for some time.

    Hope this helps,
    RB
     
  7. SaggyWoman

    SaggyWoman Active Member

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    At best it would be 15 years before I could touch retirement, even at 59.5. so I am going highly aggessive at this point.
     
  8. TomVols

    TomVols New Member

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    At 15 years out, I wouldn't dream of having more than 10-15%, maybe 20 if you're very sheepish, in bonds or fixed securities. (I personally would have virtually nothing in fixed securities at this point, but I am not risk averse in the slightest). Maybe as you get a little closer, say within 7 years, you can back off the pedal some.

    I have heard a couple of "formulas" to use in selecting a number of stocks/bonds, but I don't recommend them. They don't take into account your risk tolerance, etc.

    A good financial advisor (CFP, ChFC, MBA) should be helpful. If you're a Guidestone participant, I'd recommend speaking with them.
     
  9. TomVols

    TomVols New Member

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    Totally agree. I've never liked planners who say (taxes / estates / ______ aren't my game. If they don't understand the estate/tax ramifications of the plan they recommend, then they don't understand your needs as a client.
     
  10. SaggyWoman

    SaggyWoman Active Member

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    I have two different retirement accounts, and both are in 100 percent aggressive.
     
  11. SaggyWoman

    SaggyWoman Active Member

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    Too bad the last few weeks we have been in decline!
     
  12. TomVols

    TomVols New Member

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    In the long run it will be good for the economy and the market will be fine.
     
  13. ReformedBaptist

    ReformedBaptist Well-Known Member

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    Right on Tom. :thumbs:
     
  14. saturneptune

    saturneptune New Member

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    I have less than a year until retirement, and I watch mine like a hawk. Here is a link that the federal government's 401k (replaced Civil Service)suggests for more conservative closer to retirement. I am in the L2010 most of the time. The L funds are made up of the 5 basic funds.

    G is Treasury bills, a constant 5%.
    F fund is a bond fund.
    C fund follows the S and P 500.
    S fund (small caps) follows the Wilshire 4500
    I fund (international) follows the EAFE fund.

    Hope this helps.

    You really should see a financial advisor.

    http://www.tsp.gov/lifecycle/flash/index.html
     
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