Thursday, 29 January 2009

Defensive Assets - Rule of Thumb

In the latest Helm, Vanguard's periodical magazine for investors, there is a general rule of thumb regarding asset allocation into defensive assets:
However, one rule of thumb sometimes used is that your bond percentage could equal your age. This means that if you are 70, about 70% of your portfolio could be in defensive assets with only 30% exposed to more volatile shares.
Good to keep in mind. As always, this is only a general rule. What is the optimal choice depends on any specific circumstances you're in. Year 2008 was a reminder on how to properly build an investment portfolio and stick to it.

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