February 13, 2016

UNFORTUNATELY UNIVERSAL PERSONAL ACCOUNTS CAN'T ALLOW THIS:

How Much of Your Nest Egg to Put Into Stocks? All of It (DAVID A. LEVINE, FEB. 12, 2016, NY Times)

No less an authority than Warren E. Buffett has stated that 90 percent is the right answer. That's a level of investment in stocks that many investors, not just older ones, find dangerously uncomfortable, particularly when the stock market is as volatile as it has been lately. Yet Mr. Buffett, the most renowned investor of our time, established a trust for his wife that puts 10 percent of his bequest in short-term government bonds with the remainder invested in a broad-based stock index fund.

But even Mr. Buffett's advice may be too conservative. Indeed -- except for known, near-term financial obligations like a large tax bill that you might owe on April 15 or a down payment on a house you're buying in the next few months -- the best asset allocation, nearly all the time, is 100 percent stocks.

Posted by at February 13, 2016 9:21 AM

  

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