In this episode of Baird Retirement Management, Scott Bartosh and Greg Ashcroft tackle the burning question: Is the 60/40 portfolio dead? Together, they dive into the history, evolution, and current relevance of this iconic investment strategy. From its academic origins in mean-variance optimization to its behavioral appeal for investors, the team explores why the 60/40 portfolio remains a reliable, if imperfect, tool for many retirees.
They also break down the challenges it faced in 2022, the shifting dynamics of interest rates, and the pitfalls of oversimplifying allocation strategies. Learn why "it's not dead, just evolving," and how modern tweaks—like adjusting bond durations and diversifying beyond traditional indexes—can better align portfolios with today's financial environment.
Whether you're a long-time investor or just beginning to think about retirement, this episode will help you understand the nuances of portfolio construction and how to avoid common mistakes. Tune in for practical insights, a touch of humor, and a definitive answer to the 60/40 debate.
