Kimber over at No Limits Ladies posted today on guidancefrom Jim Cramer, Cramer’s advice is to be heavy into equities or aggressiveinvestments in your 20’s and 30’s and then start moving more towards FixedIncome investments closer to retirement.
My only complaint with Cramer’s advice is that those of uswho retire in our 40’s or 50’s will need this money for the next 30-40years. Will fixed income investmentscontinue to grow as we start to withdrawal funds? Will our nest egg last because of our earlyretirement? Will inflation eat away thefixed income over time?
I talk with many retirees who are now living off theirinvestments and most of them are still 60/40 or 70/30 between stocks and fixedincome simply because they know they will need to continue to retain growthduring retirement.
Work Less, Live More talks about this same issue and how toovercome it. Using the 4% Withdrawal Rule and Proper Asset Allocation, your egg will not only last butthrive.
Just another opinion :)