The good, bad and ugly of inflation for seniors

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investorzzo's picture
investorzzo
Status: Diamond Member (Offline)
Joined: Nov 7 2008
Posts: 1182
investorzzo's picture
investorzzo
Status: Diamond Member (Offline)
Joined: Nov 7 2008
Posts: 1182
Re: The good, bad and ugly of inflation for seniors

Lessons for retirees

http://finance.yahoo.com/focus-retirement/article/112148/lesson-for-reti...

VeganDB12's picture
VeganDB12
Status: Platinum Member (Offline)
Joined: Jul 18 2008
Posts: 757
Re: The good, bad and ugly of inflation for seniors

Thank you for another interesting set of articles.  I like the idea of cutting back on spending after nasty bear markets to allow for greater appreciation in the portfolio and additional savings during the rebound but good luck picking the bottom in this market.  Also, any senior who has thecourage to keep a 55/45 split between equities and bonds after getting burned in the great bear market of 2008-2009 is a brave soul indeed but certainly would be doing well now.  But past performance does not predict future outcomes in this era so......we shall see.

SteveW's picture
SteveW
Status: Gold Member (Offline)
Joined: Jan 21 2010
Posts: 490
Re: The good, bad and ugly of inflation for seniors

Interesting article, but like all post-hoc analysis it says nothing of the future and who would likely have been giving that advice.

I track my pension portfolio on an annual basis and was quite lucky to lose only 9.4% for the 2008 year. Because of the structure I was able to invest more heavily in equities in late 2008 through May 2009 and made 20% for 2009. I'm now 75/25 equities to fixed income. I just don't believe standard age related portfolio structure is appropriate for today's economic environment. Also half my equities are in PMs (definitely overweight and 60/40 miners/physical). I look at this structure as a hedge since if the economy improves and PMs fall then the standard equities will do well and vice versa. 

Its a calculated risk, but since we have no debt and my wife owns an additional house (in Canada where the market is still frothy) that she inherited from her parents we would not be entirely destitute if everything had (or will) blow up.

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