In addition, many investment authorities expect future returns, at least for the next decade, to be lower than the historical averages due to low interest rates and high stock valuations. While my crystal ball is cloudy about what the future holds for stock market returns or interest rates, it’s important to realize that if your retirement plan relies on your achieving historical rates of return to succeed, it may not be as robust of a plan as you think. You may need to save more, work longer, or even take more risk with your investments than you would like, knowing that the risk of running out of money in old age may be worse than the risk of losing money in the markets.
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ACEP Now: Vol 36 – No 11 – November 2017Asset allocation is a personal decision that you should make after careful consideration and in consultation with your advisors and those you care about. While there is little performance difference between a 65-35 portfolio and a 60-40 portfolio, you need to get your asset allocation in the right ballpark and then stick with it through thick and thin to reach your financial goals.
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One Response to “How to Determine Your Ratio of Stocks to Bonds”
October 26, 2021
sarinayour view toward market and investment has been one of the most clear and precise and practical ones I have ever come across, I kind of became surprised when I saw this page is a medical page and not a professional investment blog. I am studying finance and now am looking forward to see more of your insights to learn deeper than what I can read in guidelines and books. it’s just so practical