Long before the crash, I had fine-tuned my rule-of-thumb asset allocation model, centered at 50/50 for older investors in (Continued) the distribution phase of their investment plan. Rather, I recommended—as a crude starting point—that an investor’s bond position should equal his or her age. An investor age 65, then, would consider the propriety of a 65/35 bond/stock allocation. Clearly, such a rule must be adjusted to reflect an investor’s objectives, risk tolerance, and overall financial position. (For example, pension and Social Security payments would be considered bondlike investments.)
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