general rule of thumb used to be that the proportion of bonds in one’s portfolio should equal one’s age. Nevertheless, even in one’s late sixties, I suggest that 40 percent of the portfolio be committed to ordinary common stocks and 15 percent to real estate equities (REITs) to give some income growth to cope with inflation. Indeed, since life expectancies have increased significantly since I first presented these asset allocations during the 1980s, I have increased the proportion of equities accordingly.
