Asset Allocation In Your 20s: How Should You Invest?

05.29.07 | Online Investing | 0 Comments | by junger

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Being a young investor brings with it the comfort of knowing that you're getting started at the right time, but many questions about the right way to set up your investments.

While Boglehead philosophy preaches asset allocation of bonds equal to your age and mostly the rest in stocks, I've questioned the idea of not having 100% in stocks.

But apparently not all of the folks at Vanguard agree. From MSN Money:

Instead, play it aggressive, and put 90% of your investments in stocks, says Ellen Rinaldi, executive director of investment planning and research at mutual funds giant Vanguard. Stocks are interchangeably referred to as equities, since as a stockholder you own a slice of the company's value in the market, its equity.

"From an allocation viewpoint, someone in their 20s has a very long horizon, so they can handle the ups and downs of the market," says Rinaldi. "They can recover from a downturn. As a result, they should be heavily invested in equities."

There just doesn't seem to be any consistency to the advice, even from folks who seem to come from the same school of thought.

Even in my thread on the 100% stock investment, opinions were all over the place.

Personal Finance Advice has a look today at how young investors and savers should approach financial advice that may or may not be geared toward them:

As with any financial advice you have to think critically about how it applies to your particular situation. Just take note that when you are in your 2 s and trying to formulate a financial plan, don

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