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Why The 60/40 Stock/Bond Rule Is Stupid

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Before starting this self study program, please go through the instructional document.

Overview

  • Why 60/40?
    3 mins
  • The Lesson in 2008
    11 mins
  • The Scariest Thing Money Printing
    19 mins
  • Designing a Target Date Fund
    29 mins
  • Diversified Defense Against Inflation
    38 mins

Course Description

For decades, the “go to” asset allocation used by most investment advisors is 60% in equities and 40% in bonds, but this is a stupid choice for many investors. Asset allocation is the most important investment decision because it explains 100% of investment performance. Check your own asset allocation. Is it 60/40 or near that ratio? Why? 

The Employee Benefit Research Institute (EBRI) reports that the average IRA account is 60/40 regardless of age. Also, the $2.5 trillion in target date fund investments is 60/40 at the target date. 60/40 is ubiquitous, and it’s stupid because it’s just not right for everyone. Nothing is a true “Goldilocks portfolio.”

  • The 60/40 Stock/Bond Rule is ubiquitous, and that’s stupid because it’s just not right for everyone.
  • Asset allocation is the most important decision, and is designed to achieve objectives. Risk preference needs to be controlled by risk capacity.
  • It’s easy to be smarter than 60/40


Key topics covered in this online CPE webinar:

  • Why 60/40 is stupid?
  • What’s smarter?


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Learning Objectives

  • To discuss why 60/40 is the one-size-fits-all allocation 
  • To discover current risk in stocks and bonds
  • To evaluate performance of 60/40
  • To check appropriateness of 60/40 for those near retirement

Who Should Attend?

  • Accountant
  • Accounting Firm
  • Certified Public Accountant
  • Certified Senior Advisor
  • Chartered Professional Accountant
  • CPA (Industry)
  • CPA - Mid Size Firm
  • CPA - Small Firm
  • CPA in Business
  • Finance Pros
  • Financial Planner
  • Personal Financial Specialist (PFS)
  • Private Wealth Advisor
  • Senior Accountant
  • Wealth Management Advisor
  • Wealth Planner
  • Young CPA

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