For those of us who are older, our asset allocation should be such that we can tolerate significant stock market losses without threatening our financial survival; i.e., most of us should have
a relatively high allocation to fixed income (bonds and cash).
So you should therefore have
a relatively higher allocation to equities.
Not exact matches
While
higher rates may cause investors to reconsider their bond
allocations, they may provide
relatively stable income and act as a diversifier in times of market stress.
Despite the lower
allocation for small capitalization stocks, this percentage is
relatively high given the relative size of that market segment.
Bonds are also a
relatively safe investment, so a low - risk
allocation should have more assets in the bond market and less in the
higher risk,
higher return stock market.
If you are a
relatively high net - worth investor with a large fixed - income
allocation in IRA accounts, you might consider opening up IRA CDs at each of the institutions mentioned here, up to the maximum federal insurance limits.
For starters, the bond component of the Vanguard asset
allocation ETFs is likely to be quite tax - inefficient, so it's best not to use these products in non-registered accounts if you're in a
relatively high tax bracket.
Moreover, with these life cycle portfolios,
relatively little is contributed when the
allocation to stocks is
high, since earnings are
relatively low in the younger years.
His insurance companies have
relatively low underwriting leverage, but they benefit from
high allocations to stocks.
If one takes historical emissions into account, one could argue that an EU or U.S. individual exceeded a fair
allocation of carbon emissions long ago, whereas Chinese individuals have not yet come close to using up their fair share (because their
high emissions rates began
relatively recently and because China is supporting a larger population).
The UBS - Campden Research report attributes that attractive gain to
relatively lower
allocations in real estate in favor of
higher allocations in equities and private equity.
With stock valuations
relatively high now, this suggests starting retirement with a low
allocation to stocks — as low as 30 percent — and taking withdrawals from the fixed - income part of the portfolio so that, in effect, you'll take on a
higher equity
allocation over time, he says.