Even someone close to retirement doesn't need to go 100% bonds. It's not like someone needs all their retirement money on day 1. The part that remains in equities will continue generating dividends that will get reinvested, and recover over time.
Even someone close to retirement doesn't need to go 100% bonds. It's not like someone needs all their retirement money on day 1. The part that remains in equities will continue generating dividends that will get reinvested, and recover over time.
100% of anything is a bad idea if you're going to have to draw on them any time soon. Bonds are less volatile than equity, but they're still subject to drops in value.
Indeed, we have just been through arguably the largest (nominal) drawdown in the history of fixed income.
Sure, but a mistake I often see is people thinking that people's entire retirement savings is needed on the first day of retirement. People can and should still be invested in equities even in retirement, it's just the percentage is less depending on age and burn rate.