AboutDr. Joseph de Beauchamp Expertise Over the decades, I have taught the MBA schools in this subject. I have published on over 2000 public companies. I love to help provide information to the individual and company.
Question I am a retired AeroSpace engineer, living on Social Secutity and a small pension. My mutual fund portfolio is currently allocated as follows:
Domestic Bonds-22%
Global Bonds-12%
LargeCap Stock-30%
Small Cap Stock-10%
Internatioal Stock-9%
Cash-17%
I have held thia mix since Dec. 2004 with the result of about a 2% loss in value.
In an effort to get on the plus side in value, should I readjust this mix and,if so, just how?
Thanks in advance for your input.
Answer Norman,
You may wish to hold just the international stock fund. This might perform better over the next 20 years. I do not think we will find much returns on stocks and bonds except lower values through 2012. I think at this bottom, it will take perhaps two decades to recover back to the 1999. Higher rates and more trade wars appear to be on the horizon. Keep your money safe. The cycle started in 2000 and will continue for along time.
One suggest is that you find a large well managed Life insurance company and clear your money into what is called a fixed annuity. Do not purchase variable or market risk annuity. Fixed annuity pays a high yield in the 7% current rate area. Once there in the annuity, take a life certain income and live off the income.
You of course will read many other opinions that differ from mine. It is what this old professor of finance believes is best: no market risk and stable income for the next couple of decades. You will thank me for this someday.
