Sell bonds and more aggressive allocations?

Investing
#1

Hi Jeremy! During a free consult with a sofi rep, he had mentioned to sell my bonds as it is not aggressive. I have abt 7% in bonds right now, and follow the glide path of a tdif (but invest in free fidelity index funds because the expense rate is cheaper- thanks to you!)

I have been wanting to be a bit more aggressive in the glide path. The rep said that I should have 100% in stocks now bc I am not planning to retire soon (I’m 36).

Question- Should I hold bonds and just be more aggressive in other funds or sell bonds bc ROI is so low? Would you recommend increasing glide path allocations? What do you think? I have my Roth IRA and brokerage with fidelity.

#2

Well… anything 80%+ stocks would really be considered a “very aggressive” allocation. You’re at 93% stocks. Replacing that last 7% with more stocks likely won’t have any meaningful effect on your future returns. There also may be some diversification benefit to having a bond portfolio (i.e. if stocks go down and bonds go up, you can use some of the bond money to buy more stocks at a discount… they say diversification is the only “free lunch” in investing)

But broad strokes, it just isn’t likely to matter a whole lot. I tend to like a TDIF aligned glide path towards bonds… I think one day when you’re 60 or 70 you’ll be very glad if the market drops 50% and your portfolio is largely unaffected. So when do you start that slow progression towards bonds, a little bit at a time, in a way that’s not reactive to the market? Just on a pre-set schedule. Being 36 and 7% bonds seems like you’re still in the “very aggressive” portion. If you wanted to start that progression at 45 or 50, that would be fine too.

So, I’d support you either way. I’d say the thing to avoid is reactive oscillating of strategies based on the reactions to the market or the most recent article you read. That type of changing of strategies opens you up to underperformance.

Sounds like you’re doing great! Think long term and stay the course! :slight_smile:

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#3

Awesome, thank you for the support, I move forward a little more confident in the decision making process and will reallocate maybe in a decade or so! Thank you!

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