Quoted: I am just concerned that the market as a whole is going to see flat to possibly negative growth in the next 12-18 months. I am just wondering if pushing all my contributions to the available bond fund would help me protect what I already have. I'm not planning on retiring for another 20 years or so, but I am also not anywhere near where I wanted to be financially at this point in my life. |
If you aren't retiring for 20 years, who cares what the market does in the next 12 to 18 months?
I would
not put any more money into bonds with this timeframe. The return over time just isn't there. Bonds are to protect your money, not grow it. With 20 years to go, you need growth.
I would like to retire in 20 years, but I don't think that's going to happen... I may well have 30 to go. But both my IRA and my 401(k) are very heavily in stocks. I love seeing the market go down... it means each contribution buys that many more shares, so when the market goes back up, my balance balloons accordingly.
I look at it this way... if stocks turn out to not be a good long-term bet, then I'm screwed anyway. I might as well play the game that the odds and history tell me to.