Your gross asset /income allocation

Hi
Jack Bogle is famous for his age/asset allocation formula eg, if you are 40, you should have your investments 40% in bonds/ fixed income, 60% shares and if you are 70, 70% in fixed income, 30% in shares...

We in Australia are "different" as we have a lot of our net wealth in property...

I am curious on YOUR Income allocation VERSUS your asset allocation on retirement..

I had a quick back of envelope calculation and was quite surprised at my own figures:

Gross Asset Allocation Versus Income(passive) allocation
Property 70% 65% (yes! i have positive cash flow nirvana!)
Shares(incl super) 20% 19%
Fixed deposits 10% 16%

I wonder if i am missing on anything? Can you share?

 

100% - black

 

At which casino did you place that bet and was you on a winner?

 

I think you are missing something rather important..... CONTEXT.

Those allocations are relevant to the typical situation of age versus retirement. Ie. retirement from ~60 onwards.

If however you want to chart your own course in life & be a rebellious, irresponsible & utterly contemptuous individual that retires before they are ~60 yrs old, then some adaptation of that formula may be a worthy start point. For example, if you can achieve your desired income goals by 40 or 50 yrs old, why wait until 70 to convert into more secure low risk structures for your portfolio? ..... well, you’d only wait if you were chasing rainbows & wanted more, more, more.... but for some, having a low risk solid passive income stream from an earlier age far outweighs the lost opportunity for capital growth by leaving a larger portion in growth assets.

Hence, considering CONTEXT for one’s own goals/strategy rather than for the masses is essential for those of us that are rebellious, irresponsible & utterly contemptuous...

 

Yes..i am definitely Rebellious, Utterly Contemptuous...has been my badge throughout my life...anything other than that is ...boring...

Yes..i did think about the Context wise in terms of age..but decided to throw this to the wind (my friend's dad just passed away at 92..left behind 35 million ..never stopped investing!) ..

I guess my aim is of the question is to peek at others' % allocation and consider if i should adjust those allocation...you don't know what you don't know..

Care to share now ?

 

Well, IMO, there is something else that your seemingly missing that makes any comparisons to others allocations rather immaterial.... ROI.

For example, I may have very little capital vested to generate a considerable cashflow. Hence my allocations may look considerably rather odd without specific detail regarding ROI. This is particularly relevant for Property as yields can vary quite significantly. Ie. Is your 70% allocation to Property in Residential or Commercial? What is the Gross yield &/or ROI? These things matter as they are fundamental to your cashflow position hence comparing % allocations IMHO, is nefarious.