Stillwater007
Recycles dryer sheets
- Joined
- Dec 30, 2020
- Messages
- 68
I see much info on the topic of Asset Allocations that it can be overwhelming at times trying to pick the right funds that are personal for us.
I came across this article https://www.advisorperspectives.com/articles/2020/08/31/the-unimportance-of-asset-allocation-in-retirement-planning
Viewing some of the percentile ranges is interesting. While it shows that 100% stocks on a down year can be significant compared to a conservative portfolio which we all know. However, ultimately that price/value of the Portfolio is the SAME for both aggressive and conservative. On a year that is advantageous, it shows that they are NOT the same. It shows that the more aggressive the Portfolio, the more value/profit.
Would having a more Aggressive Portfolio be the way to go and in order to protect one self in down years, would have money tucked away in something like Ginnie May that would cover a couple years of expenses?
I feel like I may be missing something here as it just doesn't sound this easy. Would having several years of expenses tucked away, even in something like Ginnie May be taking away from some of that money being invested?
Or is this a classic example of The Barbell Strategy?
I came across this article https://www.advisorperspectives.com/articles/2020/08/31/the-unimportance-of-asset-allocation-in-retirement-planning
Viewing some of the percentile ranges is interesting. While it shows that 100% stocks on a down year can be significant compared to a conservative portfolio which we all know. However, ultimately that price/value of the Portfolio is the SAME for both aggressive and conservative. On a year that is advantageous, it shows that they are NOT the same. It shows that the more aggressive the Portfolio, the more value/profit.
Would having a more Aggressive Portfolio be the way to go and in order to protect one self in down years, would have money tucked away in something like Ginnie May that would cover a couple years of expenses?
I feel like I may be missing something here as it just doesn't sound this easy. Would having several years of expenses tucked away, even in something like Ginnie May be taking away from some of that money being invested?
Or is this a classic example of The Barbell Strategy?
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