Template AA setups

I would suggest having simple templated AA (asset allocations) by age setup with this to both educate and make it easier for people to invest.  Asset allocation is one of the most important concepts in investing.  Simplicity is also key - a 3 index fund portfolio is sufficient for most people.  This is similar to how many Target date mutual funds are already setup.

 

For example:

 

Age 18-30 Template

70% domestic equities (Total US Market Index Fund)

20% international equities (Total International Index Fund)

10% bonds (Total US Bond Index Fund)

 

Age 30-40 Template

60% domestic equities (Total US Market Index Fund)

20% international equities (Total International Index Fund)

20% bonds (Total US Bond Index Fund)

 

Age 40-50 Template

50% domestic equities (Total US Market Index Fund)

20% international equities (Total International Index Fund)

30% bonds (Total US Bond Index Fund)

 

Age 50-60 Template

40% domestic equities (Total US Market Index Fund)

20% international equities (Total International Index Fund)

40% bonds (Total US Bond Index Fund)

 

Age 60+ Template

30% domestic equities (Total US Market Index Fund)

20% international equities (Total International Index Fund)

50% bonds (Total US Bond Index Fund)

3 Comments
BECU Employee

@jenniferstipe- Love the idea of templates, I know I would personally find those helpful as well. Looking forward to further discussion on these Digital Investment Accounts. Cheers, KristinA 

BECU Employee
Status changed to: Under BECU Review
 
BECU Employee
Status changed to: Under BECU Review