Check your own asset allocation. Is it 60/40 or near that ratio? Why?
The ubiquitous 60/40 stock/bond solution is wrong for many, especially baby boomers.
For decades, the “go-to” asset allocation used by most investment advisors is 60% in equities and 40% in bonds, but this is a stupid choice for many investors. Asset allocation is the most important investment decision because it explains 100% of investment performance.
Check your own asset allocation. Is it 60/40 or near that ratio? Why?
The Employee Benefit Research Institute (EBRI) reports that the average IRA account is 60/40 regardless of age. Also, the $3 trillion in target-date fund investments is 60/40 at the target date. 60/40 is ubiquitous, and it’s stupid because it’s just not right for everyone. Nothing is a true “Goldilocks portfolio.
Field of Study: Finance
Serial entrepeneur specializing in target date funds and baby boomer investment education.
Ronald J. Surz is co-host of the Baby Boomer Investing Show and president of Target Date Solutions and Age Sage, Target Date Solutions serves institutional investors, namely 401(k) plans. Age Sage serves do-it-yourself individual investors. His passion is helping his fellow baby boomers at this critical time in their lives when they are relying on their lifetime savings to support a retirement with dignity, so he wrote a book: Baby Boomer Investing in the Perilous 2020s .
