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Most investors should start with an asset mix of 60% stocks and 40% fixed income. Then fine tune the weightings based on age, risk tolerance, level of taxation and need for income.
1. Age or time horizon, the longer time horizon, the more stock weighting
2. Experience, the more experience, the more stock weighting
3. Income and tax bracket, the higher income/tax bracket, the lower fixed income weighting
4. Risk tolerance, the more risk tolerance, the more weighting on stock.
For me, the right asset mix is 80/20
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