Our research has shown that young investors are more likely to have a portfolio that is more inclined towards stocks. This video explores why investors ’asset allocations often change as they move closer to retirement age.
No matter where you are in life, we can help you choose the right assortment mix for your goals.
What kind of financial choice do vanguard investors prefer? We spent 5 years studying 5 million investing families to find answers to these interesting and important questions. Looking at what other investors are doing can be a helpful criterion when deciding on your own portfolio. In this investment journey we can all learn from each other.
Our research shows that the average vanguard investor portfolio consists of 63% stocks, 16% bonds and 21% cash.
We found an interesting difference in the way investors approached their asset mix based on their age. If you are under the age of 39, your portfolio is more likely to be heavy on stocks. In fact, this age group allocates about 90% of their portfolio to them. By comparison, people over the age of 55 keep about 66% of their assets in stocks.
Check this out. There is a rule of thumb in the investment industry that says you need to reduce your exposure to your equities as you get closer to your goals. So if your goal is to save for retirement, you move your holdings away from risky investments like stocks, and towards safe investments like bonds or cash, as you are approaching your target retirement age.
While it’s interesting to see the averages and trends, remember: you are not the average investor. It’s important to make decisions about your own goals, time horizons, and risk tolerance, and to settle on a resource mix that’s right for you. This is how we become strong investors together.
All investments are at risk, including the potential loss of money you invest. Investing in bonds is subject to interest rates, credit and inflation risk.
There is no guarantee that any specific asset allocation or combination of funds will meet your investment objectives or give you a certain income level.
Diversity does not guarantee gain or protect from loss.