Reply to For those who are not 100% equities

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]60/40.  Plenty of room for growth, but more stability and income than with a higher percentage of equities, along with less risk.  My portfolio is large, and I have no need to reach for every last possible bit of growth through a more risky higher percentage of equity allocation - taking some "off the table" is a form of insurance.

Studies have shown that while higher percentage of equities result, over a very long time period, in higher returns, the differential isn't actually so high as to justify for many people the associated risks and volatility of such a portfolio.  In the chart on the page below, the 60/40 portfolio returned 8.8% compared to 10.5% for the 100% equity portfolio, a real but not massive difference when you also look at the relative volatilities of the two.

https://investor.vanguard.com/investor-resources-education/education/model-portfolio-allocation

[/quote]

It could make a massive difference over, say, 30 years. Not that I'm all equities due to that [/quote]

Yes, but that difference could be either positive or negative, depending on the sequence of returns for different asset classes.[/quote]

Over 30 years, the difference will be positive.[/quote]

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