Can I eliminate bonds considering gov. pension and disability income?
Resume IA
Un utilisateur de 40 ans avec une pension et un revenu de handicap se demande s'il peut éliminer les obligations de son portefeuille d'investissement
Conseil cle
Il est possible d'éliminer les obligations si la retraite est déjà sécurisée, mais il est également rationnel de conserver ou d'augmenter les obligations pour maximiser les héritages
- Montant max
- 9k€
40 years old with $9k/mo in combined retirement and disability, which increases approximately 2.5% annually. Loosing that income is very unlikely, it will stop if I die, but have term life insurance to cover my family in that event. I'm still working, current income is strong, projected to get stronger, and invest a 70/30 split between VTSAX & VTMGX. Am I safe eliminating bonds and sticking with my current two fund strategy? Missing anything by skipping bonds?
“When you have pensions that cover most or all of expenses you can sort of do whatever you want. It's totally rational to go without bonds because your retirement is secure even in the event of very poor equity returns. And it's also totally rational to keep or even increase the amount of bonds, because even the low return from bonds will be sufficient to fund retirement. Some people are of the mindset that they want to maximize bequests so do the former, others are of the mindset that they just want peace of mind and do the latter.”