What is the Proper Asset Allocation Of Stocks And Bonds By Age?

What is the Proper Asset Allocation Of Stocks And Bonds By Age?
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[NicholasSebastin]

I've been considering transferring my retirement savings to a new account with better investment options. With inflation eating into savings, it's crucial to make the most of every dollar. I just don't want to risk losing any of the tax-deferred benefits in the process.

[jnuechte]

This topic here "asset allocation by age" really is one major topic you guys should devote an entire show to. As you mentioned there are many factors that come into play, so lets have a show that discusses all those. This would be a great topic, and really one of the only ones you haven't already discussed that is still not 100% clear.

[Linette-g-y]

I’m 32 and investing for the first time in my life. I have started contributing to my 401K and opened a Roth IRA with automatic contributions, but my question is, does asset allocation really matter at first, or perhaps am I just overthinking as a beginner?

[harrisonjamie]

Smaller, speculative stocks have endured a historically weak stretch. Investors are betting that a turnaround is finally in the works. I’ve lost about $320k within a few months, how do i take advantage of the market turnaround?

[gregobrecht]

Here’s our dilemma. We got started too late. 47 years old and 5K in retirement. I feel like we have to be 100% equities in order to really have a chance.

[theshiftinginvestor]

And don’t trust retirement target fund managers They have been known to not shift properly to less risky assets with time like they’re supposed to. The only person you can trust is yourself.

[sunnyd]

Family longevity is important to consider as well. My grandma lived to age 96. My grandpa 92.

[MillerMedeiros]

Some studies say that equity exposure should increase after retirement:

"... it turns out that a “rising equity glidepath” actually does improve retirement outcomes! If market returns are bad in the early years, a rising equity glidepath ensures that clients will dollar cost average into markets at cheaper and cheaper valuations; and if markets are good… well, clients won’t have a lot to worry about in retirement anyway (except perhaps how much excess money will be left over at the end of their life)." — Should Equity Exposure Decrease In Retirement, Or Is A Rising Equity Glidepath Actually Better? (2013) Michael Kitces

[jamesmorris]

Thanks, you guys! FINALLY..a rational response, to this "vexing" question, of asset-allocation. You are SO correct..it must be customized to each person's unique circumstances and income requirements!

[lordrichard]

It’s important to decide what you’re trying to balance with your asset allocations. I want to balance risk. So I did some in precious metals and some in stocks. I skipped bonds because they’re high risk and low reward.
Stocks are high risk, high reward. Gold is low risk, low reward.

[TrashCanDan]

28 years old and currently 100% Equity Index Fund.

[mesupremacy]

125-age in stocks, rest in bonds. I personally follow that rule but then round up to nearest multiple of 5. So for example, ag 43, would mean 82% stocks so I would personally do 85% stocks, 15% bonds.

[yugarithen]

I’m 40 years old.90/10 Stocks/bonds
VTSAX 70%
VTIAX 20%
VBTLX 10%

[kona]

52 years old and I'm 90/10 and good with that.

[robbieb]

Target index funds are horrible. They are always re-adjusting and re-adjusting at target dates and not market conditions. Also target funds have high expense ratios. You should be re-allocating % future contributions.

[Real.Estate.Report]

I’m a long way to having any more than 10% of bonds in my portfolio

[amattson]

When the market is down allocate higher percentage stocks to bonds like 90/10. When market is high balance it out more. That way you buy more stocks at low price and buy less at high price.

[OneNewHope]

I see zero reason to have bonds in my early portfolio. Maybe when I'm 10 years out from retirement I'll re-balance to be more conservative, but until then, you're just committing to lower returns with bonds.

[Magdalene]

I think buying bonds is outdated. The low yield will drag down your portfolio.

[alexc]

Any thoughts on a 25 year old, all ready have a Roth 401k target date at 7% cont. but wondering if I should put the full 15% there or the rest in a taxable account investing in a etf and what allocation that should be?