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Balanced Portfolio By Age: How To Find Your Perfect Portfolio

Does having a balanced portfolio by age lead to a desired portfolio? We have the answer for you.

The question of optimum portfolio mixture based on your age comes up frequently. The general concept seems to be that the older we are, the more conservative we have to be because we do not have as long to recover from losses. On average, a 20 year-old has a lot longer to recover from a market downturn than an 80 year-old.

We have done some research on how long it took to recover from major downturns with different stock and bond mixtures. What many may find surprising is how similar the recovery time has been for the different portfolio mixtures. See "How to Make an Investment Portfolio: 6 Steps to Better Investing" for a description of portfolio design.

Balanced Portfolio by Age - Drawdown and Recovery

To represent the stock market, we… Read More …