News Summary: Is a 60/40 stock-bond mix obsolete?January 17, 2013 @ 3:05 pm
(AP) - TIME TO RETIRE 60/40?: Many experts question whether an investment portfolio with 60 percent in stocks and 40 percent in bonds is a good starting point for many investors.
60/40 BACKGROUND: The 60/40 portfolio is considered a rough gauge for how to build adequate retirement savings without taking excessive risk. It's promoted for investors a decade or two from retirement.
CHIEF CRITICISMS: Critics say a 60/40 approach relies too much on bonds. The long-term outlook for bonds is poor because yields are near all-time lows. Others say a diversified portfolio should include alternative assets, and not just stocks and bonds.
(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)
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