FYI: 82% stock/18% bond.
That's the current asset allocation of a portfolio that was 60% stock/40% bond a decade ago and hasn’t been touched since. For investors who haven’t been actively trimming their portfolios’ stock positions, it’s a good bet that their portfolios are courting more equity risk than they intended them to. And if they’ve been actively adding to stocks amid the runup, their portfolios might be listing still more heavily toward stocks.
I’ve been beating the drum for at least a few years about how people getting close to retirement and retirees, especially, should consider rebalancing out of equities. While there hasn’t been a payoff for taking action on that front (except briefly early in 2018 and again later in the year), paring back equities in favor of bonds can help reduce a portfolio’s volatility.
Regards,
Ted
https://www.morningstar.com/articles/926441/5-steps-to-a-refreshed-rebalanced-portfolio.html
