The government can't continue buying bonds forever in an attempt to keep the economy rolling. Eventually, the gravy train will end and interest rates will rebound from the depressed levels they have been at for the past five years. Before quantitative easing ends, investors need to anticipate what rising interest rates will do to their portfolios — especially if they are close to retirement and have a good chunk of their savings in bonds.

Most advisors agree that the typical asset allocation of 60 percent equities and 40 percent bonds won't work in a rising interest rate environment. They do, however, disagree on how retirement portfolios should be changed to hedge against what some predict is a coming storm.

"We somehow as humans have something programmed into our DNA that the farther we move from a bad experience, we convince ourselves it is impossible to happen again," said Steve Blumenthal, founder and CEO of CMG Capital Management Group Inc.  in King of Prussia, Pa. "That is good for participating in life but bad for investors."