Short answer - 100% equities for you, right now, could be a reasonable AA. But you have to be able to stomach volatility of the stock market.
Longer answer - check out TPAW Very useful tool, easy to use, and playing around with it gives you a sense for how different assumptions / AA, etc affect accumulation, retirement spending and legacy. It implements lifecycle investing which can help you think through appropriate asset allocation given anticipated savings while working as well as different income sources in retirement. In short, the lifecycle model treats your future earnings/savings as a bond you presently own (but draw down over time) which is why you are so aggressive in Equities when you're young. Similarly, it will treat your pension like a bond. The result is a higher equity allocation than somebody without a similar pension.
Longer answer - check out TPAW Very useful tool, easy to use, and playing around with it gives you a sense for how different assumptions / AA, etc affect accumulation, retirement spending and legacy. It implements lifecycle investing which can help you think through appropriate asset allocation given anticipated savings while working as well as different income sources in retirement. In short, the lifecycle model treats your future earnings/savings as a bond you presently own (but draw down over time) which is why you are so aggressive in Equities when you're young. Similarly, it will treat your pension like a bond. The result is a higher equity allocation than somebody without a similar pension.
Statistics: Posted by sunrider6 — Thu Apr 04, 2024 1:32 pm — Replies 6 — Views 453