Hi everyone. I have a question about how to create a balanced portfolio -- probably a 3-fund portfolio of US equities, international equities, and a bond fund.
First of all, does anyone have a suggestion for the proper balance at age 45? I have done tons of reading and I think I've even asked a specific question about it on this forum -- and yet I've still never felt comfortable that I had the magic number.
Second, let's say I have a work 401k, a Roth IRA, and an old rollover IRA (traditional). After I decide on the overall allocation -- lets say 50/25/25 for example -- do I simply replicate this mix in each account? Or should I weight more equities in one type of account and more bonds in another type of account? (For example, I could see holding more of the bond fund in the Roth IRA, because bonds would be less volatile and could double as an emergency fund, and would be more accessible in the Roth IRA since the principle can always be withdrawn.)
Finally, any thoughts on just using target-date funds instead of DIY allocation? The target-date funds always seem to have a more aggressive equities allocation than the recommended amounts for my age.