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100 - age = % stocks/equities
vs. the buy and hold approach/philosophy.
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I don't see anything wrong with this, and why is it versus? You can just buy and hold, and then re-balance every year or so.
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I think you are copping out a little when you are basically saying that "buying and holding" is not the same as "asset allocation choice." Yeah. . .it's not. . .but they are joined at the hip.
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Huh? I see no cop out here.
Asset allocation and "buying and holding" are indeed separate issues. And for that matter, I was referring to institutions dropping the ball on target retirement funds. Had they set it correctly and left it alone, individual investors could have easily continued to buy and hold that fund.
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I mean, c'mon. . .if you are going to "buy and hold", what do you think is the proper asset allocation for a 50 year old?
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The simple answer is 50% stocks and 50% bonds. Feel free to slice and dice or find a quality fund with that basic pre-allocation.
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Are we going with 70 - age now? Or now the correction of the lifetime has happened are we going with 120 - age?
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Come on. I've never said any of this.