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"I wouldn't ever go with more than 75-80 percent equities in a retirement portfolio."

It's a fundamental tenet of Fooldom that the S&P 500 Index is a relatively conservative investment, even though it technically is an equity. The long term trend is upward. Average return runs 10 to 11%. Corrections happen, but usually recover within 3 years.

Hence, by sticking to your allocation of S&P Index funds, investors can hold higher equity positions.

Yes, that is quite a change from the old recommendations which would have you put at least your age in fixed incomes.

Everyone has to decide how much risk they can tolerate. But that is a personal decision. Most people we are told are too conservative in the investments they choose for their 401K plans. For those who contribute, it is the most common error.
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