Millions of investors have the same two pieces it belongs retirement advice: Your portfolio should not plan to split 60/40 between stocks and bonds, and you, after leaving the job to withdraw more than 4% in annual savings. These rules may have been followed in the past, smart, but experts say do not take in today’s world of incredibly low interest rates. And with the March 3 announcement by the Federal Reserve that further rate cuts in the blast Crown fear of economic impact, it is clear that the situation is not likely to change anytime soon. And ‘time, therefore, to revisit these old guidelines. First, there is the 60/40 rule, ie the long-term growth stocks with its ties to compensate for safety. But analysts warn that at low prices or even negative, the bonds are not offered interest share of income decline stable during bear markets can compensate. Also, the guide came when stocks and bonds are negatively correlated returns of stocks rose as those went to bonds, and vice versa. But lately they tend to move in tandem, making it less useful to mate. Morgan Stanley gave outlook for 60/40 portfolio, providing annual return of 4.1% over the next ten years, only half of the average performance of the rule recently introduced a “sobering.” A Bank of America said the report, this mix of assets “in the 2000s and 2010s, but has flourished in the 2020s will not survive.” It has the 60/40 rule ditching money does not mean the stock market today’s volatile to be moved. The alternatives are the US or emerging market bonds investment grade corporate bonds, each of which yields both higher offer than the US Treasury. “You can generate a higher income level, if your fixed-income investments to diversify,” says Tracie McMillion, head of global asset allocation strategy at Wells Fargo Investment Institute. However, some experts say that the 60/40 rule after can still hold for investors with a decade or more before retirement. Meanwhile, the 4% rule is intended to provide investors with a sense of how much they need to save for retirement. A person following him, who has $1 million, he put away as expected should not withdraw more than $40,000 a year, adjusted for inflation. A point of reference study has found investors for this rule has had a 95% chance that their savings would last for 30 years. But 10-year yield of the US Treasury, which considers global benchmark, was much higher, the study was carried out as in 1990, about 5% to 6%. Following the rate cuts by the Fed, it fell below 1% for the first time. The prices that the low life expectancy longer extension of the US means that modern investors after the 4% usually have a probability of 1 in 3 of running out of money. “It ‘s really difficult right now,” said Wade Pfau, a professor at the American College of Financial Services. He says that today’s investors should not expect to retire 3% a year in the guesthouse. With inflation running the leaves close to 2.5%, very little real yield. Some experts say it is wise to avoid catchAll council board in the first place. “These rules are simple and so popular, but perhaps too easy,” says Anil Suri, Managing Director of Bank of America Investment Solutions group. Instead, investors should create a personal financial plan and considers how the market forces change to date. For investors, they fall behind, there are several ways to catch up, although no one is easy. You can choose to work longer, which adds to gains and reduces the board. You can spend less. Or they can seek higher returns through riskier investments. The last option may seem attractive, but it carries the risk of losing even more crash in global stock markets. To protect against a possible recession, he says McMillion investors must contain 12 to 18 months of expenses in cash value. Pavone also underperforming links to investments in pension supplement that income can ensure stable life, but can involve complex structures and taxes. The shocking effect that years of low interest rates in the wind with retirement portfolios, only the Wake investors would be needed. After a decade of economic growth, in a smug many have “set and forget” mentality deadline. But while on the road retired, fell behind the wheel never a good idea to sleep. This appears in the March 16, 2020 issue of time.