With a little planning and foresight it shouldn't have to be 100/0. If one does need to try that, then they messed up at some point in the past, and are now scrambling to catch up. Their stress level will be higher, and the odds of a bad outcome are increased.The question, as always, is what allocation gets you where you need to go when you want to get there, and not the potential return. For some people, that may be 100/0. For others, it might be 30/70 or even 0/100.
Why not? My kids are 30-something and 100% equity. Still young in their career, paid off school loans, so nothing "messed up".
I was 100% until my early 60's. Rarely looked at the balance. Slept well at night, even during the big market downturns. Benefited from the covid downturn as I was able to do more Roth conversions at a discount. The only time my stress level rose was a few years back, when I thought inflation was coming, so went to Ultra-Short term bonds from Median/Long. (guessed right, but one of the few times that I have ever tried to time the market)
Statistics: Posted by Big Dog — Tue Aug 20, 2024 6:02 pm — Replies 41 — Views 7094