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Asset allocation is an investment strategy that divides your investment portfolio by asset types. Categories of assets include the following: Categories of assets include the following: Bonds
For instance, if you’re 30 years old and earn $75,000, you should try to have that much saved in your 401(k). If you’re 40 years of age earning $120,000 a year, your account should have around ...
The general rule for asset allocation in retirement is this: You should shift toward more conservative investments once you retire, since you no longer have an active income with which to replace ...
One popular method for asset allocation is subtracting your age from 110 and putting that percentage of your portfolio in equities. 4. Decide when to take Social Security
The structure of your retirement portfolio should reflect your needs, lifestyle, risk tolerance and capacity, and financial resources. Diversification across tax location, investment type, time ...
A 4% withdrawal rate survived most 30 year periods. The higher the stock allocation the higher rate of success. A portfolio of 75% stocks is more volatile but had higher maximum withdrawal rates. Starting with a withdrawal rate near 4% and a minimum 50% equity allocation in retirement gave a higher probability of success in historical 30 year ...
Even with modest inflation rates of 2% to 3%, your $40,000 annual withdrawal from your $1 million nest egg won't stretch as far in 10 or 15 years as it did in your first year of retirement.
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