- Even if you don't follow an age rule for bonds, please select the answer closest to your allocation.
- If you currently have 0% in bonds, but it's in relation to your age, please select the age-appropriate answer (and NOT "I don't hold bonds"). For example, if you're 30 years old and your strategy is "Age - 40", select that as your answer.
- Similarly, if you're 65 years old (for example), but your allocation strategy was "Age + 40", please select that answer even if the total would be over 100%.
3-7 = 5
8-12 = 10
Frequently Asked Questions:
1. Why didn't you include voting options for static percentage allocations?
- The point is to see what people's allocations are relative to their age, whether or not they follow an "age in bonds" type rule. If your strategy is to have a static percentage throughout your entire life, please try to find an average percentage from the available options that best represents your lifetime strategy.
2. Are you looking for a "snapshot" of this particular moment, or long-term strategy?
G-Money wrote:Just to clarify, you just want a snapshot at this particular momen, right? So, if an investor was 32 and held only a Vanguard Target Retirement fund (which holds a constant AA until the investor is 40, then increases bonds at a rate of around 1.5% per year), you'd only want to know that the investor was presently Age-22 in bonds now, even though that same investor would be Age-30 in bonds in 8 years, Age-10 in 28 years, Age-2 in 40 years, and Age-20 in 58 years (assuming he/she planned to stay in the same fund and the glide path remained the same as it is today?
My point is simply that lots of people may increase their bond allocation at a rate greater than or less than 1% per year.
- In priority:
1. Your main lifetime asset allocation strategy. The asset allocation you will have in your Investment Policy Statement.
2. If your age-in-bonds type strategy isn't completely linear (like if the increase is some sort of curve, or maybe you don't control the allocation), then some sort of average lifetime allocation strategy. Like say you were Age-30 right now at age 30, and you plan on ending up at Age-in-Bonds by the time you're 65, then you might answer "Age-15"
3. If the above still doesn't apply to you and you're all over the place with no average, then a current snapshot will do. Hopefully only a few edge cases will be like this.
Basically, whatever represents your investment strategy the best should be your answer.