Lately we’ve both been pretty busy with our work and social lives, leaving little time to discuss the finer points of our joint retirement portfolio. What has been quite a boon to us are automatic deductions from our paychecks that continue to plow money into our retirement accounts.
When we do have the time to talk about asset allocation, the conversation usually goes like this:
Him: Hey, our investment portfolio is a little off our target allocation.
Her: So what is our target allocation?
Him: I dunno, 80% stocks, 20% bonds?
Her: 20% bonds? What are you, 60-years-old and neutered? 100% socks!
Him: Your face is a bond.
…and we end up not doing anything.
This really boils down to how much risk we’re willing to take. Here are the factors that we’re taking into consideration when determining our risk: we’re fairly young (mid 20′s), have 30+ years until we retire, we’re buyers and holders, and while not pleasant, we have weathered out the bad times that our (limited) portfolios have been through.
Without further ado, here’s our large scale allocation at least for the next few years:
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Yes, 90% stocks and 10% bonds. In the next post of this series, we’ll slice up the pie into more specific asset classes.