Mutual Funds/too soon?


I'm 61 and recently balanced my portfolio of mutual funds to be about 40% in bond funds, the rest in regular mutual funds. I don't really live off these funds, not yet anyway, but will have to in 4-5 years. So I felt I needed to protect myself in case of another huge crash and got less aggressive. But when I see the market go way up like it has, and my bond funds are earning little to none compared to the other funds with big earnings, I think of how much fatter my portfolio would be right now if I hadn't put that much in the bond funds. Did I make a mistake and should have waited before getting as conservative?


It sounds like you regret the decision you made to reduce equity exposure to buy more bonds.  Asset allocation decisions should be largely based on one's risk tolerance.  Your risk tolerance was ow which prompted you to make the changes.  I don't think this is a mistake, given your risk tolerance and your age.  One might argue that your allocation to stocks is still too high given your age.

I hope this helps.

Michael Weiss, CFA
Series 7 Exam Tutor

Mutual Funds

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Michael Weiss, CFA


I can answer most questions about mutual funds.


I am the owner of Series 7 Exam Tutor , a financial tutoring business that provides personalized tutoring for the Series 7 Exam, the Series 6 Exam ,the Series 65 Exam, the Series 66 Exam, the Series 63 Exam and the Series 24 Exam . I also offer tutoring for finance courses. For additional information, please visit, Finance Exam Tutor. Prior to launching Series 7 Exam Tutor, I worked in investments for 20 years with the majority of this time focused on investment analysis and portfolio management. I have worked for large companies such as Merrill Lynch and Evergreen Investments and have also worked for smaller firms as well. Throughout my career, I have sought to mentor younger colleagues whenever possible, especially those enrolled in the CFA program. I completed the CFA program in 2002 after passing all three exams on the first try. I also passed the Series 7 Exam with a score of 94%. For additional information about me, you can visit the links below:

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M.B.A. in Finance & Investments from the Zicklin School of Business at Baruch College and a B.A. in Finance & Economics from the City University of New York - Baccalaureate Program.

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