[njarboe]

I think that this holding stocks and bonds and then re-balancing every year or so is advice from back in the 1980's when historically bonds got under valued when stocks boomed and vice versa, so this made sense. I don't think that works so well now, especially when we had zero or negative interest rates for such a long time. If you can tolerate the risk (have a large amount of assets relative to your spending), investing in close to 100% stocks for retirement makes more sense.

[verzali]

Interest rates haven't been near zero for a while. I am not sure the logic of being 100% in stocks still makes sense right now, especially since you can get 4-5% interest in cash accounts and bonds are also starting to pay higher rates. Stocks are high right now too, and it's hard to see that stocks will deliver high returns from this point. Looking ahead, there are plenty of risks of inflation returning, especially in the US, and so I suspect rates are unlikely to fall back as fast as a lot of people are assuming.