I'm 28 years old, currently invested in a Target Date 2060 fund. Regardless of how far out I set the target date, I always see 10% in bonds, which I would think is conservative given my age and expected retirement age. However, due to automatic rebalancing, I'm wondering if having 10% in bonds is similar to keeping money on the side to put into equities in case of a market crash, since the bonds won't lose value while the equities will, making the bonds more than 10% of the mix and thus rebalancing into equities. Does this make sense, or is there something I'm not understanding?
Submitted March 12, 2023 at 05:35AM by Valiant5413 https://ift.tt/ut0pif9
