Recently, I posted a video “New Study Supports 100% Equity Investing for Life” that went semi-viral with 14,000 YouTube views & 1,000 podcast downloads.
There is an interesting active debate mainly on YouTube, and a bit on my blog with a lot of comments and questions. Let’s look at them and join the debate.
The evidence from the study to invest 100% in equities for life is certainly unconventional, so the comments revealed interesting insights.
This is an important topic. I have many posts on my blog over almost 20 years about how much better your Financial Plan and retirement income are with a high equity allocation.
I have posts about other studies, including my own. I believe people with a high enough risk tolerance who will stay invested through market crashes should invest 100% in equities. This is unconventional wisdom – but studies show it works!
In my latest podcast episode and blog post you'll discover:
What did the study actually say?
What did most of the comments agree on?
Does the study support 100% equities right through retirement?
Won’t many people panic and sell?
How does the recommendation of 67% international look for US vs. non-US investors?
Do international stocks provide good diversification?
Would this work in some time periods but not others?
Would it work for narrower equity indexes, such as the NASDAQ?
Is this study new?
Isn’t the risk of running out of money in retirement similar for 100%, 80% & 60% equities?
Isn’t it better to keep some cash?
