FYI: A reader asks:
I recently started my first real job, and I am currently setting up my 401k. I am selecting my asset allocation. Using the website portfolio visualizer, I have been back testing different allocations. I came across an interesting portfolio that beats most of the allocations on the website (Sharpe ratio and CAGR). It’s a 60 percent small-cap value and 40 percent large-cap value. I selected this allocation because I am willing to take the risk, and plan to change the allocation as I get older. My question is would you suggest this asset allocation to a younger person who understands the risk associated with the portfolio and has time on their side?
Regards,
Ted
https://awealthofcommonsense.com/2018/11/asset-allocation-for-the-risk-tolerant/
