What Does the Optimal Portfolio Look Like? (Asset Allocation by Age)

In this video we discuss how your portfolio composition and asset allocation can change throughout the decades, in addition, we talk about how you should be investing based on a risky, moderate, or conservative risk profile. Please note that although you may start off "Risky" in your 20s, you may be a moderate or conservative investor in your 50s or 60s, it doesn't mean you stay "Risky". So in that way, each decade is it's own decade with its asset allocations by risk tolerances.

The other thing to note is that this is a general approach that is good for the majority of investors, but you may have a unique situation or unique case in which you may not want to follow these guidelines.

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WHO AM I?
Hello 👋 I’m Humphrey, I used to be a financial advisor, worked in gaming/tech, and started my own eCommerce business. I make practical, rational content on investing, personal finance, the news, and much more with a data-backed approach. My goal is to help you with financial literacy and creating wealth.

PS: I am no longer a current Financial Advisor, any investment commentary are my opinions only. Some of the links in this description are affiliate links that I do receive a commission for & they help support the channel!

⏱️ Timestamps:
0:00 - Start Here
0:38 - Risky Investors
2:54 - Moderate Investors
4:10 - Conservative Investors
5:39 - 20s
7:05 - 30s
8:56 - 40s
10:00 - 50s
11:47 - 60s
13:27 - Performance Over 20 Years

[humphrey]

Thanks for watching! Make sure to scroll back up and hit Subscribe 😉

[nicolasbenson]

I have a 3 fund portfolio consisting of 33% S&P, 33% Total stock, and 33% international. I feel a need to focus on complete growth so I went 100% stocks, but does the SP500 and TSM overlap too much to make sense holding both? However I’ve been in the red for a month now. I work hard for my money, so investing is making me a nervous sad wreck. I don’t know if I should sell everything, sit and just wait but watching my portfolio of $450k dwindle away is such an eye -sore.

[hermanramos]

This is quite educational. It's crucial for newcomers to keep in mind that the financial markets are highly irrational in the short run. You should constantly be ready for the unexpected. That is how chance operates. Because of the inherent risks in the market, I always favor long-term investments.

[kanejeff]

As an lnvesting enthusiast, I often wonder how top level investors are able to become millionaires off investing. . I’ve been sitting on over $545K equity from a home sale and I’m not sure where to go from here, is it a good time to buy into stocks or do I wait for another opportunity?

[Courtney-Alice-Gargani]

❤ this video. I took huge risks and it paid off. But my dad told me don’t do it all the time. I am in my 20’s. But as I get older I am going more conservative.

[Optimus-Prime-Rib]

Screw bonds. Replace that allocation with a Dividend ETF like SCHD or VYM.

[Yugiboii]

Always love to see these “by age” videos.. it’s a good way to see different perspectives. Keep it up Humphrey!

[jonathantorres]

This month I started investing 5 dollars a day everyday. Currently 24 and cant wait to see my portfolio when i’m in my 30s

[michaelbrady]

I just turned 50, and I am behind; so it's full steam ahead increasing the savings rate with a more aggressive style! Great content, thanks!

[MrDionappling]

I'm glad you are here, you are appreciated.

[alexmolto]

I was just going through your old videos wondering this very question yesterday. Thank you.

[caeciliasaori]

As always, solid information well-presented. Truly helpful 👍🏻 Thank you! 😊

[CharleneCong]

Really enjoyed your take on adjusting our portfolios with age! One thing I’ve found super useful is the “age in bonds” rule, where you match the percentage of bonds in your portfolio to your age. It's a smart way to lower risk as you get older. But to keep the growth going, sprinkling in a mix of ETFs that cover different sectors and regions can spice things up. This combo helps maintain a good balance between safety and growth potential. Nice sharing Humphrey!
❤️

[isaacchapman]

My mom told me a story about a coworker she had 20 years ago. He invested a couple hundred dollars every paycheck into a Polish oil company. After a decade or so, they sent him a plane ticket to Warsaw to check out their operation, because he had become one of the majority shareholders. His wife was pissed he hadn't told her...

[starlight]

Very intelligent subject. Thanks for content.

[pdfpdju]

This video was amazing and cleared ups a lot of things for me. I am 60 and I struggle with this because I started investing late. However I am fortunate to have a military pension, VA compensation and later Social Security. I have been extremely risky and it has helped me catch up, but I struggle with risk tolerance versus risk capacity.

[michaelswami]

I’m 100% invested in stocks at 62, but the plan is to use only dividends when (if) I retire.

[Rekeaki]

I’m in my 40’s and still 100% stocks. Even with the big falls in share prices over the last couple decades, I dont think you need 10 years to recover…..that said, if your portfolio is large enough, even losing a decent percentage should still leave you comfortably well off. If you are high income, stick to higher risk stocks.

[filb]

Great video. I follow the rule of thumb which is similar to your pie charts. I am 42 using age-20 for bonds....so right now I have 20% in bonds...when I'll be 50, it will become 30%...at 60, 40% in bonds and so on....and glad to see it falls under the video suggestions.

Thanks for the video, very helpful.

[phorn_khann]

I really appreciate uploading this helpful useful video 🎉