The 60/40 Portfolio: Is It Dead?

You might not think that investing is for you, but with a little bit of education and some advice from an experienced investor, you can be more comfortable investing your money. Investing can play an important role in how we live and how we provide for ourselves and our families. Mark Matson firmly believes that the 60/40 Portfolio is still alive and well.

 

There are financial experts and investors across the country who believe that the 60/40 Portfolio is dead. One of the few who thinks it still works is Matson. First, the 60/40 Portfolio is one that is made up of 60 percent stocks and 40 percent bonds.

Money is flying

 

Quite possibly the scariest part of investing for people is the volatility of the market. This is understandable. Mark Matson recommends finding a fair balance between stocks and bonds in your portfolio in an effort to reduce the volatility of your portfolio to meet your personal risk tolerance. Stocks are volatile and it is likely that you will take a big hit in a bad economy, which is why you should never invest more aggressively than you can personally handle.

 

One of the most difficult aspects of being a financial advisor is keeping people focused on more than just the next 30 minutes. Instead, the advisor needs to find ways to get people to focus on the next 30 years of their lives. When this is done, people can plan for their future and invest properly.