You'll feel funny but it will lower your risk. Q. I am enrolled in a 457 deferred compensation plan through my employer and plan to retire in about 7 years. I've been thinking about taking the funds in Vanguard GNMA and transferring them to one of the other accounts I contribute to because the return is so minimal on the GNMA fund. The problem isn't that it is a poorly performing fund, the problem is that it is a fixed income fund. The only thing you know for certain is that when everyone has decided that bonds are no good and stocks are the perfect investment, stocks will no longer be the perfect investment.
Markets work that way.
Questions of general interest will be answered in future columns.