Yes, I think you need to address something with the allocation-to-2050 style, even if it to just revisit what will happen very shortly. Vanguard's design parameters are here: https://institutional.vanguard.com/inve ... -path.htmlI'm 40 and have had the same asset allocation since age 18-20. I simply copy the lifecycle 2050 fund -- with domestic, international, and bonds.
After staying the course for 20+ years, I'm having regrets about holding all these bonds for so long.
I'm also having regrets about international (like many others).
I am considering the following changes:However, I'm nervous about making these changes in a 7 figure portfolio after holding the same allocation for decades. Your thoughts?
- Reduce my bonds to 0% until age 50.
- Reduce international from 35% to 25%. (Although, I could regret this if international finally make their comeback)
So you've been in the relatively stable period of allocation, but that actually changes when you turn 40 (check this against your 2050 fund).
I can't tell you what to do, but with what I know now I'd be content with following 90% equity (slice as you desire) and 10% U.S. Bond fund. Then when you hit 50, put serious thought into a retirement schedule, and begin a glide path that meets your target. There are several decision to be made, and you can study up over the next 10 years.
All my opinion, and YMMV.
Statistics: Posted by Target2019 — Thu Nov 28, 2024 5:36 am — Replies 21 — Views 1257