Inflation can be especially damaging. Reallocate your assets according to your goals, time horizon, risk tolerance, and personal financial situation. Keep cash reserves on hand. Make sure you have money for emergencies. Hold bonds for diversification.
Bonds have a higher and more durable income stream.
Retain stocks for long-term capital appreciation. While volatile in the short run, stocks have outpaced inflation over the long term. When you start drawing money from your assets, you're usually better off to take from your taxable accounts first. Online Planner , our free, award-winning financial planning tool, lets you create a personalized financial plan. Inc. All rights reserved.