What 7 Advisors Are Saying About 60/40 Portfolios, Tech Stocks Now: Advisors' Advice

What 7 Advisors Are Saying About 60/40 Portfolios, Tech Stocks Now: Advisors' Advice

7. 60/40: Yes for retirees, no for young investors.

If you are near or in retirement the 60/40 portfolio is still an efficient way to invest. You can build a 60/40 portfolio for less than .05 basis points — virtually free — and you can get track indexes for potential long-term gains.

Investors can now get attractive yields from bonds at 5% plus; this has been nonexistent over the past decade. If you are in retirement, having bonds yielding at these rates strengthens your income strategy.

If you are a younger investor, a 60/40 portfolio is a big no-no. Depending on your risk tolerance, you should be in a more aggressive portfolio that is heavily weighted to equities.

I work with many clients in tech that have concentrated stock positions. When a client has more than 10% of their net worth in a stock, I recommend they sell and diversify. This isn’t always easy as many people have a FOMO mentality about their company stock.

I work with clients on a tax-efficient sell strategy that makes sense for their life goals.

Usually it’s a quarterly or semi-annual sell strategy that helps take the emotion out of it; it’s systematized so they can take advantage of dollar cost averaging over the long term.

— Eric Rodriguez, founder, financial advisor, Wealthbuilders

See also  John Hancock vs. AXA Equitable Life Insurance Company Life Insurance: Understanding the Difference