When I became an investment adviser more than 40 years ago, there were a few tried and true rules for where to put your long-term savings. For example, subtracting your age from 100, then putting that percentage of your assets into stocks, the rest into bonds.

Another popular rule was the 60/40 rule: 60% of your savings in stocks, 40% in bonds. The idea was to achieve growth with the stock portion, and income with bonds.

These simple ideas worked for generations. But they don't work so well anymore. Why? Because bonds are no longer a safe, reliable income-producing asset. Interest rates are laughingly low, and should rates rise (about the only direction they can go from here) bonds, especially long-term bonds, will take a sizable hit. (Bond prices move inversely to interest rates.)

So, what should investors be doing, especially those approaching retirement? That's the topic of this week's "Money!" podcast. We're going to explore some ideas, see if the 60/40 formula is truly dead, and if so, what we should be doing instead. Our special guest is Roger Whitney, star of the Retirement Answer Man podcast and president of Agile Retirement Management.

Want more information? Check out these resources:
How to Earn More Money on Your Savings
Marketwatch: Should I still use the 60/40 investing rule for retirement?
Money.com: What Rising Interest Rates Mean for Your Bond Funds (Hint: It's Gonna Hurt)
Bloombergr: Death of 60/40 Portfolio Makes Returns Harder for Funds
Investopedia: Why a 60/40 Portfolio Is No Longer Good Enough
Subscribe to the Money Talks News newsletter
Take our The Only Retirement Guide You'll Ever Need course
Take our Money Made Simple course

Hosts:
MoneyTalksNews
MirandaMarquit.com

When I became an investment adviser more than 40 years ago, there were a few tried and true rules for where to put your long-term savings. For example, subtracting your age from 100, then putting that percentage of your assets into stocks, the rest into bonds.
Another popular rule was the 60/40 rule: 60% of your savings in stocks, 40% in bonds. The idea was to achieve growth with the stock portion, and income with bonds.
These simple ideas worked for generations. But they don't work so well anymore. Why? Because bonds are no longer a safe, reliable income-producing asset. Interest rates are laughingly low, and should rates rise (about the only direction they can go from here) bonds, especially long-term bonds, will take a sizable hit. (Bond prices move inversely to interest rates.)
So, what should investors be doing, especially those approaching retirement?&nbsp;That's the topic of this week's <a href="https://www.moneytalksnews.com/podcasts/">"Money!" podcast.</a> We're going to explore some ideas, see if the 60/40 formula is truly dead, and if so, what we should be doing instead. Our special guest is Roger Whitney, star of the <a href="https://www.rogerwhitney.com/blog">Retirement Answer Man podcast</a> and president of <a href="http://www.agileretirementmanagement.com">Agile Retirement Management</a>.
Want more information? Check out these resources:
<ul>
<li><a href="https://www.moneytalksnews.com/little-known-ways-to-earn-far-more-interest-on-your-money/">How to Earn More Money on Your Savings</a></li>
<li>Marketwatch: <a href="https://www.marketwatch.com/story/should-i-still-use-the-6040-investing-rule-for-retirement-2020-07-24">Should I still use the 60/40 investing rule for retirement?</a></li>
<li>Money.com: <a href="https://money.com/interest-rates-bond-yields-fund-losses/">What Rising Interest Rates Mean for Your Bond Funds (Hint: It's Gonna Hurt)</a></li>
<li>Bloombergr<a href="https://www.bloomberg.com/news/articles/2021-03-09/death-of-60-40-portfolio-makes-returns-tougher-for-wealth-funds" data-token-index="2" data-reactroot="">: Death of 60/40 Portfolio Makes Returns Harder for Funds</a></li>
<li>Investopedia: <a href="https://www.investopedia.com/articles/financial-advisors/011916/why-6040-portfolio-no-longer-good-enough.asp">Why a 60/40 Portfolio Is No Longer Good Enough</a></li>
<li>Subscribe to the <a href="https://www.moneytalksnews.com/#newsletter">Money Talks News newsletter</a></li>
<li>Take our <a href="https://unb.moneytalksnews.com/retirement-guide/">The Only Retirement Guide You'll Ever Need</a> course</li>
<li>Take our <a href="https://www.moneytalksnews.com/courses/money-made-simple/">Money Made Simple</a> course</li>
</ul>
Hosts:
<ul>
<li><a href="https://www.moneytalksnews.com/">MoneyTalksNews</a></li>
<li><a href="https://mirandamarquit.com/">MirandaMarquit.com</a></li>
</ul>

Welcome to Money Talks News: The Podcast, a podcast devoted to everything money: how to get it, how to grow it and how to keep it. From the creators of MoneyTalksNews.com, a leading source of personal finance news and advice since 1991.

Welcome to Money Talks News: The Podcast, a podcast devoted to everything money: how to get it, how to grow it and how to keep it. From the creators of MoneyTalksNews.com, a leading source of personal finance news and advice since 1991.

Money Talks News: The Podcast

Why Traditional Retirement Investing Is Broken

https://api.omny.fm/orgs/67ee9ddc-11a3-4cec-841d-ac9a015d5b41/clips/dc177cf6-bef1-44fa-955b-ad0a00e3aed7/transcript

Transcript

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