Originally Posted by 38Chevy454
I guess I have a much different perspective, to me 80/20 is too conservative for a young person. Should be higher equities IMHO.
The thing is, anything beyond 80/20 doesn't do much to increase returns, while adding significantly more risk.
A quick Google search pulled up this Vanguard study:
Portfolio allocation models
They used historical data for the time period 1926-2013, for various different indices. You can see it explained at the bottom of the page in fine print, if you are interested in the details. Moving from 80/20 to 100% stocks adds just 0.6% to your annual return (9.6% -> 10.2%), while increasing the biggest annual loss by -8.2% (-34.9% -> -43.1%).
OTOH, it probably doesn't make much difference for very young investors either way. They will likely not have saved much, so there's little to be lost, and little to be gained.
Chevy, is this your general perception, or is it maybe influenced by the currently bleak outlook on bonds? Personally, I don't hold any bonds at the moment; all my fixed income investment are in CDs.