6 Replies Latest reply on Dec 16, 2013 10:53 PM by YankeesFan

    Bonds investing changes if fed tapers QE?

    YankeesFan
      So, I will be 62 in October 2014.  I will begin phased retirement through my employer.  That permits me to work hal-time with half-salary for a max of 3 years (with their approval).  One nice benefit is they continue their 10% contribution based on what my fulltime salary was.  Wit that said you never know what life will give and after some friends passing recently I believe that retiring to enjoy that time and do what I want is more important than working more for x dollars...time is more valuable than the money... With that said I have been contributing the max for a while and have a fairly decent balance.  Now that money is more than numbers on paper and I want to protect gains and reduce exposure to loss.  I have a pretty good allocation and portfolio of investments in TIAA-CREF funds of all ilks (Equities, Bonds, RE, Multi-Asset and TIAA Traditional). With that long statement what I am wondering is what folks are thinking about 1. What they will do with their bond exposures with what sounds like a bad stretch coming when the Fed tapers QE. 2. I am thinking about moving my Bonds exposure to TIAA Traditional and possibly change/reduce  Equity exposure a little or maybe add a little there.  The reason is wanting the opportunities Equities give but believing bonds will be a loser for a while why not move the money to TIAA knowing that is at least guranteed increase of a minimum of 3%.  At this point I want to reducemy losses but have some potential for gains.  Thoughts?  I am at about 45% TIAA, 14% Bonds, 31% Equities 5% Multi-asset and 5% R.

      Thanks...
        • Re: Bonds investing changes if fed tapers QE?
          YankeesFan
          Just one other thing.  I do understand that money in my GSRA TIAA Traditional gains at a smaller percentant as that money is available to be moved pretty much at will (minor cost if movede out before 120 days of moving it in).  That money in my Employer contract for TIAA Traditional gains at a higheer percentage but can only be moved out as a Payout Annuity over 10 years if you don't actually use it as an annuity. But, knowing it is guranteed gains is somewhat comforting this close to retiring.
          • Re: Bonds investing changes if fed tapers QE?
            jayhawk77
            Didn't TIAA just change their guaranteed return at least on new money?
              • Re: Bonds investing changes if fed tapers QE?
                YankeesFan
                Well, it would be nice to hear more ideas, thoughts and input but just an FYI. As the market was looking good and after a little discusion with my "Wealth Manager" and doing some more investigation on what the experts think (always a crap shoot I must say) and what might happen because of easing of QE AND looking at the returns I get at best with Bonds I decided to make some moves.  I moved all of my bond investments in my GSRA to TIAA Traditional. It's a guaranteed 3% and I can still move that money around at will (for the most part) if I want to reinvest it elsewhere. On the RA side I added the Equity Index fund and moved about 50% of my bond investments to Equity Index and a few of my other funds.  Nothing to TIAA on the RA side...yet...because of the need to move it out through a Payout Annuity.  I don't have an issue with that but thought this makes some sense to try to gain a little more equity exposure (but to more conservative funds).  I will likely move the rest of my bond exposure soon but not sure where yet. Anyway, just put myself in a more conservative position but still room for growth and almost rid myself of bond exposure "assuming" from "most" everything I hear and see and read that Bonds may be a bubble in the process of bursting.  Anyway, close to retirement and feel I want to be in a more conservative position, protecting myself against dramatic losses...I hope but still have some room for growth.  Just seems to me a correction of some sort is coming at some point down the road.