878-Friday Q&A: International Banking and Residency, To Leave or Not to Leave (a Job), Target Date Retirement Funds, Asset Allocation
Radical Personal Finance
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Modern Portfolio Theory
As we get closer to retirement, people are increasingly less willing to accept volatility. Modern portfolio theory orts to create the most efficient portfolios for every level of accepted volatility. The highest returning portfolio will generally be an all stock portfolio. If you just have a little bit of bondsye, maybe maybe you give up alittle bit of total risk. You gain a big in dampening effect with some with less volatility.
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