{"id":129,"date":"2009-08-20T21:47:43","date_gmt":"2009-08-21T01:47:43","guid":{"rendered":"http:\/\/www.smartvalueblog.com\/?p=129"},"modified":"2015-05-28T20:51:15","modified_gmt":"2015-05-29T00:51:15","slug":"best-asset-allocation-and-portfolio-breakdown-by-age","status":"publish","type":"post","link":"http:\/\/www.smartvalueblog.com\/?p=129","title":{"rendered":"Asset and Portfolio Allocation By Age"},"content":{"rendered":"

Asset Allocation<\/a>:<\/strong><\/p>\n

There is a simple rule of thumb to figure out how much to invest in stocks, subtract your age from 100–so a 45-year-old would put 55% (100 minus 45) in stocks. However, simple rules are only base guidelines and won’t help most investors meet their goals. Instead, decide what return you need to reach your goal and how much volatility<\/a> and fluctuation you can bear. Then create an asset allocation that has consistently produced that return over long periods of time. The wealthier you are, the more conservative you can afford to be.<\/p>\n

Under 30<\/span><\/strong><\/p>\n

\"Investment<\/a>

Investment Allocation.<\/p><\/div>\n

Equity (Stocks, Funds) \u2013 75%<\/p>\n

Bond\/Income (Bonds, Funds) \u2013 5%<\/p>\n

Other (REITs<\/a>, Commodities<\/a>) \u2013 10%<\/p>\n

Cash (Money Market<\/a> and CDs) \u2013 10%<\/p>\n

30 to 39<\/span><\/strong><\/p>\n

Equity (Stocks, Funds) \u2013 70%<\/p>\n

Bond\/Income (Bonds, Funds) \u2013 10%<\/p>\n

Other (REITs, Commodities) \u2013 10%<\/p>\n

Cash (Money Market and CDs) \u2013 10%<\/p>\n

40 to 49<\/span><\/strong><\/p>\n

Equity (Stocks, Funds) \u2013 65%<\/p>\n

Bond\/Income (Bonds, Funds) \u2013 15%<\/p>\n

Other (REITs, Commodities) \u2013 10%<\/p>\n

Cash (Money Market and CDs) \u2013 10%<\/p>\n

50 to 59<\/span><\/strong><\/p>\n

Equity (Stocks, Funds) \u2013 45%<\/p>\n

Bond\/Income (Bonds, Funds) \u2013 35%<\/p>\n

Other (REITs, Commodities) \u2013 5%<\/p>\n

Cash (Money Market and CDs) \u2013 15%<\/p>\n

60 and Up<\/span><\/strong><\/p>\n

Equity (Stocks, Funds) \u2013 35%<\/p>\n

Bond\/Income (Bonds, Funds) \u2013 40%<\/p>\n

Other (REITs, Commodities) \u2013 5%<\/p>\n

Cash (Money Market and CDs) \u2013 20%<\/p>\n

Portfolio Breakdown:<\/strong><\/p>\n

This area will be unique and designed specifically for each individual investor based on their investment goals, personality, character, investment knowledge, and risk tolerance. You should work with a registered investment adviser and manager to determine your investment goals, risk tolerance, and asset allocation strategy.<\/p>\n

\"Earnings<\/a>

Earnings and Commitments at Different Life Stages.<\/p><\/div>\n

Equity (Stocks, Funds)<\/span><\/strong><\/p>\n

Large Caps<\/a><\/p>\n

Mid Caps<\/p>\n

Small Caps<\/p>\n

International<\/p>\n

Emerging Markets<\/a><\/p>\n

Bond\/Income (Bonds [ST, INT, LT], Funds)<\/span><\/strong><\/p>\n

Government<\/p>\n

Inflation-Protected<\/p>\n

Municipal<\/p>\n

Corporate<\/p>\n

High-Yield<\/p>\n

Floating Rate Notes<\/p>\n

Foreign<\/p>\n

Other<\/span><\/strong><\/p>\n

REITs<\/p>\n

Commodities<\/p>\n

Cash<\/span><\/strong><\/p>\n

Money Market Accounts and CDs<\/p>\n","protected":false},"excerpt":{"rendered":"

Asset Allocation: There is a simple rule of thumb to figure out how much to invest in stocks, subtract your age from 100–so a 45-year-old would put 55% (100 minus 45) in stocks. However, simple rules are only base guidelines and won’t help most investors meet their goals. Instead, decide what return you need to […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[3],"tags":[],"views":512,"_links":{"self":[{"href":"http:\/\/www.smartvalueblog.com\/index.php?rest_route=\/wp\/v2\/posts\/129"}],"collection":[{"href":"http:\/\/www.smartvalueblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.smartvalueblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.smartvalueblog.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"http:\/\/www.smartvalueblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=129"}],"version-history":[{"count":2,"href":"http:\/\/www.smartvalueblog.com\/index.php?rest_route=\/wp\/v2\/posts\/129\/revisions"}],"predecessor-version":[{"id":6047,"href":"http:\/\/www.smartvalueblog.com\/index.php?rest_route=\/wp\/v2\/posts\/129\/revisions\/6047"}],"wp:attachment":[{"href":"http:\/\/www.smartvalueblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=129"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.smartvalueblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=129"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.smartvalueblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=129"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}