Comments on: Diversification - It’s Better Than Nothing http://advancedpersonalfinance.com/diversification-its-better-than-nothing/ Moving beyond the basics Mon, 01 Dec 2008 22:34:39 +0000 http://wordpress.org/?v=2.2.2 By: Curious Cat Investing Blog http://advancedpersonalfinance.com/diversification-its-better-than-nothing/#comment-30894 Curious Cat Investing Blog Wed, 16 Jul 2008 03:12:37 +0000 http://advancedpersonalfinance.com/diversification-its-better-than-nothing/#comment-30894 Diversification is good but people shouldn't get too excited about 6 months, or even 1 or 5 years when looking at retirement investments with 20+ year horizons. Stocks will definitely have some bad years. But still, over the long term they have proven very sound investments. I wouldn't have anything in long term bonds unless I had less than 5 years to retirement (and even then not much at these interest rates). If I have to have something other than equities at that point I would rely largely on money market funds. Diversification is good but people shouldn’t get too excited about 6 months, or even 1 or 5 years when looking at retirement investments with 20+ year horizons. Stocks will definitely have some bad years. But still, over the long term they have proven very sound investments.

I wouldn’t have anything in long term bonds unless I had less than 5 years to retirement (and even then not much at these interest rates). If I have to have something other than equities at that point I would rely largely on money market funds.

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