stemikger wrote:60 to 70 years old -- 60% in stocks; 40% in bonds
70 to 80 years old -- 50% in stocks; 50% in bonds
As always would love to hear your opinions.
I think that the stock/bond ratio is an individual decision. Rules of thumb are nice starting points. It just depends.
I've heard the arguments for having high stock percentages in retirement; those arguments don't fit me.
I've heard arguments for having at least 20% in stocks; that doesn't fit me.
The "age in bonds" idea has been very useful, but that no longer works for me.
I'm just not comfortable owning stocks. At this time stocks just don't fit my situation....that could change...so I continue to read, learn, and adjust.
This quote works for me...
Bill Bernstein wrote: snip...
2) The key point about the riskiness of stocks is where you are in your lifecycle. As I said in Ages of the Investor, for the relatively young saver (from whom we've seen a lot of posts, at least in their former lives, in this thread), stocks aren't risky at all. I was once there myself. But for the retiree, with no remaining human capital, they're Chernobyl toxic.
I like Larry Swedroe's quote....
"First, if have no need to take risk, don't. Rule number one of investing. Also Rule 2 and 3."