My retired mother lives off the interest of a trust, which is managed
by a bank. At the beginning of the year the balance was $700,000.
Now it is down to $375,000. I looked at her portfolio and was shocked
to discover that 99% was invested in stocks and stock mutual funds,
and only 1% was in a money market fund. From the books and articles I
have read, it seems like many writers agree that at least 40% of a
retiree’s money should be in bonds. Should she put 40% of her money
into bonds and the money market fund, now that it has lost almost half
its value this year?