BFP Follow Up: (120 minus Age) Stock Allocation Rule
Posted by miller on 08 Jan 2007 at 09:55 pm | Tagged as: Investing, Personal Finance
Jim of Bargaineering ran interesting post examing those new target retirement year funds that many financial companies are offering. I suggested plotting his data in the comments. So with his permission, here we are! Read his post and the comments — there are lots of good thoughts.
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So Fidelity is the conservative one of the bunch and T Rowe is the most aggressive? Interesting. Vanguard is odd… conservative early on, aggressive in the middle and conservative on the back-end. I guess I would have expected more aggressiveness in the early-middle portion to help build wealth. Anyway, the chart is a great way to visualize the data. Great post.
Well, remember, its just conservative compared to the rule! 85% to 90% stock is pretty damn aggressive!
What is interesting is that both Vanguard and Fidelity’s farthest out dates are *less aggressive* than their second farthest out dates. Maybe there’s just more international exposure (some stocks are risker than others… this doesn’t reflect that)?