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I’ve never seen anyone recommend 60/40 at least in the era of forums like Reddit personal finance and Bogleheads.

by dangus 3y ago

bombcar 3y ago
60/40 was (always?) back-of-the-envelope math to show how it could be more performant than 100% stocks or 100% bonds with rebalancing and less risk. The other main shift has been that retirement at 65 isn't just for 10 years or so - you could be staring down 25+ years, and need the retirement income to last that long. If you can get there with 60/40, you probably should be investigating annuities as they protect against the final risk: outliving the money.
- dangus 3y ago
  I have always heard ratios closer to 80/20 or 90/10 unless you are approaching the annuity realm like you mention.
daviding 3y ago
Here in Canada, there was a trend for the 'Couch Potato Portfolio' with the arrival of popular ETFs that used these splits between equities and bonds and then just rebalancing once a year. The key point was really using entire index ETFs with low MER fees on auto, with the bonds portion as the stability. 'All in' ETFs have sort of replace that.
throw0101d 3y ago
> I’ve never seen anyone recommend 60/40 at least in the era of forums like Reddit personal finance and Bogleheads. It's recommended all the time in (e.g.) /r/PersonalFinanceCanada if you want a more conservative portfolio (e.g., in or nearing retirement): * https://canadiancouchpotato.com/model-portfolios/ https://canadiancouchpotato.com/model-portfolios/ or if it suits your risk profile (you'd lose sleep over large dips in your portfolio, even if you aren't in/near retirement): * https://old.reddit.com/r/PersonalFinanceCanada/wiki/investing#wiki_consider_the_risks https://old.reddit.com/r/PersonalFinanceCanada/wiki/investin... * https://www.youtube.com/watch?v=JyOqqtq12jQ https://www.youtube.com/watch?v=JyOqqtq12jQ * https://canadianportfoliomanagerblog.com/model-etf-portfolios/ https://canadianportfoliomanagerblog.com/model-etf-portfolio...
- deleted 3y ago
  [deleted]

I’ve never seen anyone recommend 60/40 at least in the era of forums like Reddit personal finance and Bogleheads.

by dangus 3y ago

I’ve never seen anyone recommend 60/40 at least in the era of forums like Reddit personal finance and Bogleheads.

60/40 was (always?) back-of-the-envelope math to show how it could be more performant than 100% stocks or 100% bonds with rebalancing and less risk. The other main shift has been that retirement at 65 isn't just for 10 years or so - you could be staring down 25+ years, and need the retirement income to last that long. If you can get there with 60/40, you probably should be investigating annuities as they protect against the final risk: outliving the money.

dangus 3y ago
I have always heard ratios closer to 80/20 or 90/10 unless you are approaching the annuity realm like you mention.

daviding 3y ago

Here in Canada, there was a trend for the 'Couch Potato Portfolio' with the arrival of popular ETFs that used these splits between equities and bonds and then just rebalancing once a year. The key point was really using entire index ETFs with low MER fees on auto, with the bonds portion as the stability. 'All in' ETFs have sort of replace that.

throw0101d 3y ago

> I’ve never seen anyone recommend 60/40 at least in the era of forums like Reddit personal finance and Bogleheads. It's recommended all the time in (e.g.) /r/PersonalFinanceCanada if you want a more conservative portfolio (e.g., in or nearing retirement): * https://canadiancouchpotato.com/model-portfolios/ https://canadiancouchpotato.com/model-portfolios/ or if it suits your risk profile (you'd lose sleep over large dips in your portfolio, even if you aren't in/near retirement): * https://old.reddit.com/r/PersonalFinanceCanada/wiki/investing#wiki_consider_the_risks https://old.reddit.com/r/PersonalFinanceCanada/wiki/investin... * https://www.youtube.com/watch?v=JyOqqtq12jQ https://www.youtube.com/watch?v=JyOqqtq12jQ * https://canadianportfoliomanagerblog.com/model-etf-portfolios/ https://canadianportfoliomanagerblog.com/model-etf-portfolio...

deleted 3y ago
[deleted]