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<p>[QUOTE=&quot;GoldFinger1969, post: 8653428, member: 73489&quot;]<b>Asset Allocation Funds hold stocks and bonds for a set retirement age/date....like 2050.&nbsp; This could be a &quot;chicken&quot; way for you to dip your toes into bonds with a mix of something you have already bought (equities).</b></p><p><br /></p><p>With 28 years to retirement, I would expect a typical fund (they&#039;re all different) to have like 80% stocks and maybe 20% bonds.&nbsp; But if you hold that fund for 20 years, then in 2042 it&#039;s probably going to be 50% stocks/50% bonds (maybe even more bonds)....the allocation to fixed income is supposed to go up as you approach the target date.</p><p><br /></p><p>This would have been a problem the last 5-10 years because the rates on bonds were so low (their price was HIGH) that even as you took years off the relative attractiveness of bonds didn&#039;t help allocations.&nbsp; <i>Who wanted bonds in 2021 at record-low yields, right ?</i>[/QUOTE]</p><p><br /></p>

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