Investing for Retirement Income Is Different – Rethink 60/40 Rule
A lot of retirement guidance I have read lately continues to treat baby boomers the same as the rest of the investor public. Even after the first six months of 2022, when the traditional 60/40 stock/bond portfolio sank more than 20%.
I may not dispute the traditional approach for investors who are 25, 35 or 45 years old and accumulating savings for retirement or the kids’ college education. As we know, markets historically rebound, and younger investors with time to recover from market corrections have the benefit of dollar cost averaging.
But boomers entering or already in retirement have different needs than all the “Gens” that have come after them: They may not be able to wait around for their depressed is the important consideration — income that stays steady and grows over the decades of retirement.
