If you've got the discipline and the stomach to stick with a very
aggressive portfolio even during market cataclysms — or if your nest egg is so large relative to the amount of money you need to draw from it each year so your chances of running through your savings prematurely are minuscule — then maybe you're a candidate for the Buffett approach.
Not exact matches
Even if your time horizon is long enough to warrant an
aggressive portfolio, you have to be comfortable with the short - term ups and downs you'll encounter.
So
even if you're saving for a long - term goal, if you're more risk - averse you may want to consider a more balanced
portfolio with some fixed income investments, And regardless of your time horizon and risk tolerance,
even if you're pursuing the most
aggressive asset allocation models you may want to consider including a fixed income component to help reduce the overall volatility of your
portfolio.
Each 529 savings plan offers its own range of investment options, which might include age - based strategies; conservative, moderate, and
aggressive portfolios; or
even a mix of funds from which you can build your own
portfolio.
Withdrawing 5 % or 6 % may not be sustainable
even with more
aggressive portfolios, especially if markets fall during early retirement years.
To my way of thinking,
even the most
aggressive portfolio should not have more than 65 % in stocks and most people should stick to somewhere between 50 % and 60 %.
Even for conservative investors, there are very good reasons to add some
aggressive stocks to your
portfolio.
Graham Westmacott, my colleague at PWL Capital, has done some compelling research that suggests the whole notion of moving from an
aggressive portfolio to a more conservative one is flawed: in his analysis,
even «the best possible glide path strategy offers virtually no improvement» over a simple balanced fund that maintains a constant asset allocation.
With his
aggressive investment approach, coupled with an ability to keep calm during (and
even take advantage of) rough market times, he's well on his way to not only topping a million dollar
portfolio by the time he retires, but also leaving a lasting legacy for his newborn granddaughter.
Even if you are creating a very
aggressive portfolio, including some fixed - income investments actually increases returns.
And as you may suspect,
even in a room filled with financial planners, achieving a more
aggressive portfolio posture was, perhaps, the farthest from anyone's mind.
To compensate for that uncertainty, you might tilt your
portfolio more toward bonds,
even if your time horizon suggests you can be more
aggressive.
Given the right market scenario & valuation, and the level of risk elsewhere in my
portfolio, I'm not averse to being more
aggressive in my exposure — increasing it perhaps to 7.5 %, or
even 10 % eventually — consistent with that logic, I'd consider buying VEIL (rather than VOF) if / when I want to increase my Vietnam exposure above 5 %.
Even if your time horizon is long enough to warrant an
aggressive portfolio, you have to be comfortable with the short - term ups and downs you'll encounter.
I don't mind admitting that I was
even tempted to make the
portfolio more
aggressive but I didn't act on it.
While I think bonds have a place in
even the most
aggressive portfolio, it would be a mistake to extrapolate the recent poor run in stocks far into the future and give up on stocks altogether.
Connecticut, once the most
aggressive states in the country on its renewable
portfolio standard (RPS)-- how much renewable energy that it requires be used — doesn't
even register on regional assessments anymore.