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"Lies, damned lies, and statistics." If one wants a quote. While I agree that close is probably good enough for hand grenades (that's the whole point with them, after all), one gets 3 points for a ringer in horseshoes and one point for being close, so it's just another flawed analogy (at least on the professional horseshoe circuit).
But really, a 60/40 mix for someone under 40 (I'd say under 50)? I'd be more impressed if someone proved rebalancing starting more than 20 years before retirement enhanced returns. The never rebalanced portfolio slightly outperformed with higher volatility in the cited example, even after starting with the drag of 40% bonds. I agree with John Bogle who seems to support using Social Security as part of one's bond allotment and including more equities. A bit surprised that rebalancing every 3 months, which seems a bit hyperactive, provided second best return.
Comments
"Better is the enemy of good enough."
Also a good article.
While I agree that close is probably good enough for hand grenades (that's the whole point with them, after all), one gets 3 points for a ringer in horseshoes and one point for being close, so it's just another flawed analogy (at least on the professional horseshoe circuit).
But really, a 60/40 mix for someone under 40 (I'd say under 50)?
I'd be more impressed if someone proved rebalancing starting more than 20 years before retirement enhanced returns. The never rebalanced portfolio slightly outperformed with higher volatility in the cited example, even after starting with the drag of 40% bonds.
I agree with John Bogle who seems to support using Social Security as part of one's bond allotment and including more equities.
A bit surprised that rebalancing every 3 months, which seems a bit hyperactive, provided second best return.