investing

Asset allocation for fund investors

A conservative strategy for "Retired Ray"
Next
4 of 7
Back
text

One rule of thumb calls for investors to have the percentage of their portfolio in bonds that represents their age. So a 60-year-old would hold a 60 percent position in fixed income.

With life spans increasing and the very real possibility of being retired for 30 years or more, some investment advisers are recommending more aggressive allocations later in life.

"I have some retirees that still have 60 percent equity positions," says Kevin Brosious, certified public accountant, CFP and president of Wealth Management in Allentown, Pa. "As long as they have the liquidity to pull funds out when they want to, that's fine."

"It's really the lack of liquidity that will kill a plan or not allow a person to realize their goal," he says.

With enough liquidity, long-term investors can ride out market volatility and wait out the recovery.

For an investor who can't afford to take much risk due to time constraints or emotional disposition, a portfolio heavy on the fixed-income side and light on equities can offer some growth with some safety.

The conservative asset allocation model includes equities for growth, REITs and TIPS for inflation protection, and bonds as stabilizers.


 

 

advertisement

          Connect with us
Product Rate Change Last week
1 Year CD 0.90%  0.02 0.88%
2 Year CD 1.02%  0.01 1.03%
5 Year CD 1.59%  0.01 1.60%
 
View Rates in your area Search
advertisement
CD & INVESTING NEWSLETTER

Learn the latest trends that will help grow your portfolio, plus tips on investing strategies. Delivered weekly.

CDs and Investment

How can I pay myself first?

Dear Dr. Don, You often advise readers to "pay yourself first." It sounds like a fine idea. But I'm wondering how that actually should work. I'd like to know how much or what percentage of my income should be set aside... Read more

advertisement

Blog

Sheyna Steiner

Investing: Sometimes less is more

A sixth grade class played along in an investing throw down among college-level clubs and easily beat all their returns.  ... Read more

Partner Center
advertisement

Connect with us