FYI: Getting your asset allocation right is one of the fundamental rules of building a portfolio. Being over- or underweight in a specific asset class could skew your returns or increase your risk.
A 60/40 portfolio, which divides assets between equities and fixed income, is a classic approach to allocation.
At its most basic level, this might be 60% in the S&P 500 and 40% in investment-grade U.S. corporate bonds, says David Koch, senior wealth advisor at Halbert Hargrove.
Experts say the main draw of this strategy is its simplicity.
But allocating a retirement portfolio along these lines is not without its wrinkles. Here are four reasons why experts say investors should think twice about following the 60/40 portfolio rule:
Regards,
Ted
https://money.usnews.com/investing/investing-101/articles/why-the-60-40-portfolio-is-dead-for-retirement-planning
