You’re going to want to pay attention to a piece I wrote for you earlier this week because it relates 100% to you. It’s about what asset allocation is right for you, and I comment on a recent op-ed by former President of Fidelity Investments, Robert Pozen.
In his piece, Pozen recommends a portfolio allocation of 90% stocks and 10% bonds for those at a certain level of wealth. Which brings me to today’s point. It’s been my experience that no matter one’s level of “wealth,” seeing values decline hurts just as badly across them all. You get used to your wealth and want it to stay that way. There’s some truth in the saying, “you can’t be too rich or too skinny.”
Saying you can get through a stock market correction and actually doing it without losing your mind—or your peace of mind—are two different matters.
Read more about a balanced portfolio here:
- Be Invested, Stay Invested
- The “Free Lunch” Food Pyramid
- Your Survival Guy and a Balanced Portfolio
- Survival Guy: An All-Weather Balanced Portfolio
- The Balanced Portfolio Rises from the Grave
- Is the 60/40 Balanced Portfolio Model Broken?
- The Importance of a Balanced Portfolio
- Is Your Portfolio Balanced?
Action Line: When you want to talk about building a balanced portfolio, email me at ejsmith@yoursurvivalguy.com.
Originally posted on Your Survival Guy.