What’s wrong with Target Date Funds?. My comment:
Great post! I’m a much-published 62yearold economist, and I learned from it. I particularly liked the idea that a 30yearold has, implicitly, most of his wealth in bonds anyway, in the form of his future contributions, so he should be 100% in stocks early on. That could use further analysis. It’s not exactly bonds, since his future salary is nominally and “real” risky but inflation-hedged.
At my age, what I really wonder is whether I should still be in 100% equity (as a relatively rich person). Recall that most rich people leave an inheritance for their kids. They can afford a big income drop, so long as they don’t think it matters much if the kids’ inheritance (or their charitable giving or bequests) matters. That’s an important “if”, but nobody’s going to starve if the stock market crashes and their distirbutions fall from $150,000/year to $75,000.