Forget This Common Investing Approach, There's A Better Way.

Forget This Common Investing Approach, There's A Better Way...


StreetAuthority
March 12, 2021
A common question I get asked is: “What’s the right allocation between stocks and bonds for my portfolio?”
Now, there is no right answer to this question. I believe the standard formulas such as a 60/40 allocation or using 100 minus your age can work well if you have a large account.
For example, if you have $1 million, that would be $400,000 in fixed-income investments. Even at 3%, that would provide an income of $1,000 a month. But, with a $1 million account, you would withdraw 3% or 4% a year from the account in addition to collecting income.
But some of us don’t even have $1 million accounts. And regardless of your situation, I believe most people would be better off with a different approach.

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