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[quote=Anonymous]Best allocation when back testing is the 40/140 allocation.

Meaning 100 percent equities till 40 then move 1 percent each year to low risk shorter term bond funds.

You capture a lot of upside and in retirement you spend the short term bonds on down years to weather storm.

Remember a lot of folks including me don’t touch 401k  till RMDs start which is like 73. 80/20 has become the new 60/40 for a 60 year old.

Target date funds have been way underperforming do to dead weight of bonds. Given they from 55-65 start a heavy downward glide to bonds a lot of advisors now recommend your target date funds be set to 75

I would take the guaranteed for the bonds. When rates rise it will rise.

My older brother who is turning 62 was 100 percent stocks till
2018. Even then he only took some risk off table by paying off his only mortgage on his vacation/retirement home. Then in 2019 went 95/5.

We are talking before and after tax.

Now at 62 he is thinking of going 90/10 and glide to 80/20 over next ten years to 72.

He retired January 2022 after he does max into 401k in 401k which he started in 1983.

Bonds have not held their own lately in 2000 crash and 2008 crash bonds were great but now they pay so little no protection really unless cash or short term treasuries that yield near nothing  [/quote]

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