Here’s my boring-old-man allocation that I’ve maintained roughly since I was 30
US stocks: 36%
Intl stocks: 24%
US bonds: 40%
This seems incredibly high for a 30-year old. Is there a particular reason you’ve allocated so much to bonds? (My guess, given a rough idea of your industry, is a hedge against human capital risk?)
I’m at 95% stocks and 5% bonds at 31. Having anything more than that at my age seems wrong.
I would have had more stocks, but it’s a joint portfolio with my wife who is more risk averse. So we settled on a more conservative allocation that I don’t think we’ll need to change much if at all as we age.
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I wasn’t ready for this level of reasonableness.
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Ok you guys made me actually look at all of my allocations for various accounts and investments. I don’t know what my wife’s 401k and HSA looks like but I know it’s fairly stock heavy so if I had her info in here the stock number might bump up a bit. I’m mid 30s she’s early 30s.
Stocks 69%
Bonds 12%
Cash 10%
Crypto 9%
I’m at 99% stonks at 45 because why not
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100% new Bitcoin ETF?
Same. about 90% for my wife and I, both age 47. But we’ll both have state pensions to fall back on.
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This is basically my situation, but I’m younger
2-1 growth/fixed income allocation for me in my late 40s. We both have defined benefit pensions, but hers will be smaller since she retired early on disability.
I went and looked, most of my “investments” are in company 401k and its just some random thing called LifePath 2040 Index i.e. I’d assume its like I want to retire in 2040 so thats how the risk is set up. I mean whatever right, its at +12% this year thats fine. I see no reason to buy bonds or anything besides what has to be S&P 500.
That fund is most likely 10-20% bonds or fixed income assets
I’m like 50% bonds, the reason is my (taxable) account isn’t solely for retirement, I sometimes draw it down to pay unusual expenses or when I hit a poker downswing.
I was about 80:20 basically forever until recently, but if I had a significant pension I would have cranked it to 90 or 100. Now we are at 60:40 because we are approaching our number and I may check out of work in my mid fifties. Might get a little more aggressive in the future if I decide to keep working, but can’t see anything more than 70:30 and will likely just stick at 60:40 despite bonds for the most part sucking now.
Roughly 60/40, wife and I are mid 40s. Don’t need to be super risky. No clue if it is correct - all typical investment advice starts with “determine your target asset allocation based on your individual circumstance and risk tolerance”, which is kind of bs since it’s also like, the most important thing.
Also, most of us don’t really know our risk tolerance until the numbers start getting a lot smaller and smaller and smaller.
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I didn’t really flinch when we had the initial COVID drop of 35% or whatever it was, but I assume that was a lot easier than like 3+ years of -10% or worse, just dumping money in and watching the balances go down.
I think the optimal strategy is to pick a one fund portfolio that auto rebalances and literally never look at it for years at a time. I don’t have that kind of discipline.
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Its not like being in bonds for the past several years to decades hurt that much. It would be much worse to be a 30 year old in 40% bonds now because interest rates aren’t going to decrease but hundreds of basis points in the next 10 to 20 years.
Correct. The fund allocation is adjusted as you approach 2040 to be more conservative, assuming that you will be looking to retire around that time and won’t want to be fully in equities.