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Personal Finance Topics / Retirement Investing
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Author: rayvt ✧  😊 😞
Number: of 767 
Subject: Re: The 4% rule inventor makes some revisions
Date: 08/22/2025 9:52 AM
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I have always had trouble wrapping my head around a 40% or even 20% bond allocation.

You have a large interest rate risk. Granted, smaller than the volatility of equities.
Inflation eats up all or almost all of the long-term returns.

If you want truly safe and not just the illusion of safe, you should be in low duration fixed income. Yes, lower yield and the yield changes all the time.

Therefore IMHO that money should be in something like bank savings accounts or ultra-short-term bonds like JAAA, SGOV, FLRN, etc.

To paraphrase Tuco, "When you want to be safe, be SAFE."
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