Quote:
Originally Posted by ChiliConCarnage
I don't think so. I posted several months ago I felt bad for retirees and wasn't sure what they were doing. The performance for total market bond funds like BND/AGG is brutal now
Bonds have sucked for a decade, at best you treaded water with inflation. That's hard to have a big chunk of your portfolio produce nothing. Now with inflation up so high, your real yields are terribly negative. There's really nowhere safe to hide anymore.
I think about this because I would like to at least semi-retire early. Covid, inflation, the war. Rainmain's post does a great job summarizing that you have to make assumptions you don't know what will happen and have no control. The last couple of years have definitely highlighted that fact.
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Agreed.
That's another reason I'd be terrified to retire.
The one benefit from this noise is if we have inflation and fight it with higher interest rates, the bond market may once again be a viable low-risk investment instrument.