72 year old’s asset allocation
Dear Terry. I’ve been a longtime Vanguard index fund investor. In the last 15 years, I’ve progressed from 70-30 equity/fixed income funds, then 60-40, now 50-50, I’ve read that 30-70 allocation is more appropriate for my age, but I’m leery of that proportion because I have a good Illinois teacher pension (that I can live on without touching my IRA.) Any ideas?
10% of my portfolio in Treasuries (3-9 months in maturity). I’ve no debts. I don’t need any of my retirement accounts to live on. What do you think?
Terry Says
There’s an old stock market saying: “sell down to the sleeping point!” And that point is different for everyone. The S&P 500 is up about 26% this year. I don’t see that happening next year — but who really knows?!
The real question is how you will feel if a bear market comes along and takes the market down 20-50%? That will be a real test of your risk tolerance!
