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Asset Allocation Basics
When the stock market performs well over time, investors make bold short term investment decisions. But what about when the next bear market comes along? One of the most touted means to reduce overall volatility and risk is to adopt an asset allocation strategy.
One ThirdAger's Story
This week, a ThirdAge community member asks about the allocation of his portfolio. He is 68 years old, married, and still working. I like to hear that.
His annual income is $120,000. He has saved over the years and accumulated a very substantial portfolio. The total value of his investments is over $1.6 million. More specifically, it breaks down like this: he has over $650,000 in an IRA; $14,000 in a SEP; $40,000 in annuities; $20,000 in another tax deferred account. To top it all off, he has real estate worth approximately $900,000. His question is: What percentage of these accounts should be in bonds?
See What Jeff Says About:
• The "Science" of Allocation
• Many Ways to Cut the Pie
ThirdAge Resource
For more advice on configuring your portfolio, consult the ThirdAge Asset Allocator.
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More about Jeff Fleming
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