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What is a 60/40 portfolio?

The 60/40 portfolio model is designed for beginning investors, although it’s usually managed by seasoned money managers. “A 60/40 portfolio is an investment portfolio made up of 60% equity (stocks) and 40% fixed income (bonds),” said Carla Adams, founder and advisor at Ametrine Wealth in Lake Orion, Michigan, in a message.

Should a 60/40 portfolio be a cornerstone?

Investing professionals say the 60/40 portfolio still has a place in a retirement saver’s plan of attack – but it’s not a cornerstone. A 60/40 investment portfolio is usually comprised of 60% stocks and 40% bonds. A 60/40 retirement portfolio split should only be deployed after a thorough assessment of the retiree's unique financial needs.

Is 60/40 a good investment?

This follows two years of relatively poor performance. Returns for the 60/40 portfolio — traditionally split between the S&P 500 Index of stocks (60%) and 10-year U.S. Treasury bonds (40%) — will probably be limited. That’s because the stock market is already priced for a soft landing, and markets are already pricing many rate cuts.

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