By Matt Benjamin “What is the new 60-40 Rule?” This is a great question we recently received from Investment U reader Janice F. We liked it so much that I decided to devote an entire column to it.
Janice is referring, of course, to the classic rule of investing that says you should have 60% of your portfolio in stocks or similarly high-risk assets and the remaining 40% in very safe assets like government bonds.
The rule, which has served as the benchmark for many asset allocation strategies for decades, was popularized by Jack Bogle, legendary founder of the Vanguard Group, who invented index investing. …read more
