I occcassionally revisit Firecalc to reassess my early retirement plan. I have thus far maintained a 60 percent stock 40 percent bond investment allocation, or at least that is the general goal. I noticed a statement in Firecalc that is different from what I remember being there. Here is the statement (it is in the Your Porfolio section)-
Percentage of your portfolio that is in equities, versus fixed income? Research seems to suggest about 50% for a 10 year term, almost 70% for a 20 year term, and around 85% for a 60 year term.
Is there a reference for the research that suggests these percentages? My early retirement is somewhere between a 20 year term and a 60 year term, but my allocation to equities is not at 70 percent or higher. So I am trying to determine if I should allocate more of my portfolio to equity.
Thank you for your insight.
Percentage of your portfolio that is in equities, versus fixed income? Research seems to suggest about 50% for a 10 year term, almost 70% for a 20 year term, and around 85% for a 60 year term.
Is there a reference for the research that suggests these percentages? My early retirement is somewhere between a 20 year term and a 60 year term, but my allocation to equities is not at 70 percent or higher. So I am trying to determine if I should allocate more of my portfolio to equity.
Thank you for your insight.