Following the conventional wisdom can get you far in the investing world. That's because much of the advice for building a successful portfolio is based>How inflation and interest rates affect retirement planning
To understand why retirement calculations are shifting, it's important to take a look at how bonds behave.
Investors hold bonds for two reasons. One is to preserve capital. Because bond prices don't fluctuate as much as stock prices do, a portfolio of bonds is less susceptible to big drawdowns.
If you need to use money from your portfolio in short order, either because the money is earmarked for a short-term goal or because it's money you intend to live off of in retirement, that's a big deal. If you're about to retire or recently retired, a bearish downturn could derail your plans.
The other purpose is to provide income. Bonds provide interest payments that investors could theoretically use to supplement their income in retirement.
