Balancing Your Portfolio (Part 1): Don’t Assume 60/40 Is Right For You

Scott Pulsifer, CFA, CFP®, Financial Life Planner and Managing Partner of Junto Wealth, discusses the concept of balance in your investment portfolio. Many portfolios contain a 60%/40% allocation to stocks and bonds and are thought to be balanced. However, if you take into account volatility and the actual risk weight of stocks and bonds, you’ll see that the 60/40 portfolio may be much less balanced than you think, making it difficult for your portfolio to stay on track.