Used Vanguard's free CFP department today for the first time to see what they say, and it is (for my age 67) a 60% bond/40% stock portfolio. Since I have 23% now in bonds and the rest in stocks she didn't like it, but did admit that Vanguard is a more risk management company, hence, she thought it was too risky.
I'm using just 2% of the portfolio a year, but the way the CFP acted was if there was another crash I wouldn't be eating. Interesting reaction from Vanguard--not that I enjoyed seeing my portfolio crash in 2008 at all.
Just throwing that in FYI.
Ijust saw in, I think, Money Magazine that Vanguard, as a fund company including every investment product, earned a greater return for their investors than any other fund company. I've got Vanguard and Fidelity and darn glad to have invested with Vanguard.
I'm fairly conservative and beat the averages the past 10 years. I've been heavy in Municipal bonds, long and shorter terms, along with 25% in stocks and now I have 11% in cash. Like others, I only lead a little less than 2% to live nicely each year.
Here is the challenge......the election! No one knows how to plan based on the unknown changes to the tax code. Now, I'm starting to invest in divident ETF products that I believe will grow over the years. But, if they are taxed as ordinary income, my spendable income will go down.
My point? If you look to the past, if the future is unknown, what's the solution for today? Diversify! I would never at my age, 66, be 100% stock, nor would I be all bonds. I try to minimize expenses, take advantage of the 15% dividend tax, spend from my bond interest and have cash when thex picture becomes clear.
I love all the comments on this post. And, I don't know who will be the winners a couple of years from now. All I know is that I probably will make a little, maybe lose a little but either way I'll have enough and will enjoy life.