The 60-40 split between stocks and bonds was once solid financial advice— but no longer - QUARTZ
For the last 20 years, it was the standard rule of thumb for financial advisors: Retail investors should invest their investment portfolios 60% in stocks and 40% in bonds. It was presumed to provide the best of all worlds, combining potential for growth with protection if stock prices fell. The guidance wasn’t just peddled by banks and financial advisors, either. Target-date funds, the popular default investment options in retirement savings accounts, typically invest young workers mostly in equity and gradually move them to a 60-40 split as they approach retirement… Read full story