She been lucky that MM yields have been relatively high the past several years, but is not always the case. For many recent years, her portfolio would have returned next to nothing and would have eroded due to inflation.
She should be very conservative, no doubt, but not be 100% MM.
If it were me, I'd say 50% MM and 50% Vanguard Wellesley. That's very conservative but has a better chance of returning at least 0% real vs.100% MM. Wellesley has similar AA as Target Retirement Income with better performance and less drag.
She should be very conservative, no doubt, but not be 100% MM.
If it were me, I'd say 50% MM and 50% Vanguard Wellesley. That's very conservative but has a better chance of returning at least 0% real vs.100% MM. Wellesley has similar AA as Target Retirement Income with better performance and less drag.
Statistics: Posted by OldSport — Tue Feb 25, 2025 9:58 pm