Let's say a young person is just starting out with investing and wants to have a short working career of 10 years or so. They make a decent salary and are consistently saving 60% of it each month. What is the best asset allocation for this person to accumulate wealth in 10 years? Let's assume they are simply investing in two index funds: Total Stock Market and Total Bond Market.
Should they go 100/0 for the best shot at wealth building, given they're young and don't HAVE to stop working on a particular year?
Should they go 60/40 since the time horizon is only 10 years, and this will more reliably preserve the savings?
Somewhere in between?
Submitted January 25, 2019 at 09:31PM by WhiteRadiance http://bit.ly/2FLQWMs
