2min chapter

The Long View cover image

Michael Kitces: How Higher Yields Affect Asset Allocation and Retirement Planning

The Long View

CHAPTER

The Benefits of Investing in a Retirement Portfolio

The bonds that do the best work of protecting against sequence of return risk, I mean, ironically, like it's the most boring. They're not there to drive the return. They're there to be the thing that does well when everything else is going badly. And so taking the risks on the bond side that you take on the equity side, which is buying companies that pay better returns in the hopes that the company does well and doesn't do badly,. If you're already taking that risk on the stock side, you don't need to take it on the bond Side.

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