The Money Mustache Community
Learning, Sharing, and Teaching => Investor Alley => Topic started by: LZZ on October 17, 2016, 01:38:20 PM
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On the vanguard landing page they have a pie chart of recommend asset allocation. As I got older it gradually crept up from 15% bond to 20% bond / 85% stock to 80% stock.
Well about a month ago it suddenly flipped to 20% stock and 80% bonds.
My actual allocation at vanguard is 75% stock and 25% bonds (I'm self employed so have living expenses "saved" in a bond mutual fund).
I'm 46 years old ... do you think this is a glitch by vanguard or do people think the norm is that I really should be in 80% bonds now????
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Is this the one that you see after you have logged in? I believe in my case that target pie chart allocation came from answers I submitted using their online tool. Could you have changed some input in that tool without realizing what you did? It may be worth a few minutes to walk through it again and double-check your goals, time frame, and risk profile.
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Ysette9 - no I hadn't done anything because I didn't know about it, but I played around with the sliders now it and it did update to different percentages based on my preferences. Didn't know it was customizable! Thanks!
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It defaults based on age until you actually go in and answer the questions or manually set it.
No clue why it would be 80% bonds...
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I'm 46 years old ... do you think this is a glitch by vanguard or do people think the norm is that I really should be in 80% bonds now????
Sweet fancy Moses! I'm considered a "conservative" investor for having 40% bonds. 80% terrifies me as that seems to be increasing volatility by severely reducing diversification. Even using the "age rule", I wouldn't recommend that AA for an 80 year-old! The tool must be loco to even suggest it to someone.