For decades, the 60/40 portfolio has been the most popular asset allocation for retirees and institutional investors. It provides enough exposure to the equity markets to hedge inflation, but also plenty of “safe money” to offset dips in the stock market.
And then, 2022 – 2023 comes along when interest rates skyrocket sending the price of bonds into the red by -15%. The 60/40 portfolio failed for the first time in 40 years.
This begs the question, is the 60/40 portfolio dead?
In today’s episode, I talk about what the 60/40 portfolio is, how it’s performed over the last few decades, and then most importantly, I share 5 ways you can “modernize” the 60/40 portfolio to set yourself up for success in today’s economic landscape.
I hope you find it helpful and make sure to share this episode with a friend who is approaching retirement or has recently retired!
-Kevin
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This is for general education purposes only and should not be considered as tax, legal, or investment advice.
