<br><div><aside aria-label="advertisement" class="gnt_m gnt_x gnt_x__bv"/><aside aria-label="advertisement" class="gnt_m gnt_x gnt_x__bvd gnt_x__h"/><aside class="gnt_em gnt_em__fp gnt_em_vp__tp gnt_em__el" aria-label="Video - Online calculator helps you determine how early you can retire"><div class="gnt_em_vp_w" data-g-r="vp_tp" data-c-vt="exco" data-t-pl="teal-hero"><button class="gnt_em_vp_a gnt_em_vp__tp_a" data-g-r="vp_ap vp_tg" data-c-vpattrs="{"muted":true,"bContent":false,"an":"usatoday","pn":"USA TODAY","vidNum":0,"docking":true,"exid":"7a94a662-d8e9-49a7-aeba-e8a15c79f0f2","plcmt":"2","iu":"/7103/usatoday/preroll_video/","cut":1}" data-c-vpdata="{"adsEnabled":true,"awsPath":"tech/problemsolved","byline":"Problem Solved","canonicalURL":"","contentSourceCode":"USAT","credit":"Problem Solved","duration":72000,"headline":"Online calculator helps you determine how early you can retire","hlsURL":"https://hlsmedia.gannett-cdn.com/authoring/videos/zype/renditions/66c4d71ec57659000154c14a/480p_30fps,720p_30fps,1080p_30fps,master.m3u8?subtitles=74874802007","id":"74874802007","image":{"opto":true,"url":"/gcdn/authoring/authoring-images/2024/08/20/USAT/74874775007-retirement-1.jpg?crop=1078,606,x1,y609"},"keywords":"Retirement,Technology,Video Syndication - USAT,Syndication - Vertical Video,Exclude Smart Fronts","mp4URL":"https://downloadmedia.gannett-cdn.com/authoring/videos/zype/renditions/66c4d71ec57659000154c14a/1080p_30fps.mp4","origin":"USA TODAY","pageURL":{"long":"https://www.usatoday.com/videos/tech/problemsolved/2024/08/20/how-to-plan-for-retirement-using-an-online-calculator/74874802007/"},"promoBrief":"Retirement calculators can give you an idea of when you'll financially be able to retire.","propertyName":"USATODAY","series":"","ssts":{"section":"tech","subsection":"problemsolved","topic":"","subtopic":""},"tags":[{"id":"c29a7dd4-db9d-4a3a-bedd-e746edaf542a","name":"Retirement"},{"id":"dce1851b-9ba8-4c0d-bcd9-2b5019b3459d","name":"Technology"},{"id":"6f55135f-3b5e-490d-8a52-a3b8e1f11ee7","name":"Video Syndication - USAT"},{"id":"e0175a3c-0c15-42c4-b26b-43a3fc96471f","name":"Syndication - Vertical Video"},{"id":"6c663a2f-2376-42fb-a1ae-238bdc1dd45e","name":"Exclude Smart Fronts"}],"title":"How to plan for retirement using an online calculator","url":"/videos/tech/problemsolved/2024/08/20/how-to-plan-for-retirement-using-an-online-calculator/74874802007/"}" aria-label="Play video"><img alt="" class="gnt_em_vp_img" src="https://www.usatoday.com/gcdn/authoring/authoring-images/2024/11/06/USAT/76091604007-20241106-t-142800-z-822687959-rc-2-qzaa-3-szws-rtrmadp-3-usaelectionstocks.JPG?crop=5495,3093,x3,y266&width=660&height=371&format=pjpg&auto=webp" data-g-r="vp_po" fetchpriority="high" elementtiming="ar-lead-image" decoding="async"/><svg class="gnt_em_vp_svg"><use xlink:href="#gnt_svg_video_play"/></svg></button></div></aside><p class="gnt_ar_b_p">The 60/40 rule is a fundamental tenet of investing. It says you should aim to keep 60% of your holdings in stocks, and 40% in bonds. </p><p class="gnt_ar_b_p">Stocks can yield robust returns, but they are volatile. Bonds provide modest but stable income, and they serve as a buffer when stock prices fall. </p><p class="gnt_ar_b_p">The 60/40 rule is one of the most familiar principles in personal finance. Yet, not long ago, much of the investment community walked away from it. </p><p class="gnt_ar_b_p">A chorus of essays and think pieces in 2023 and early 2024 asked if the 60/40 portfolio <a target="_blank" href="https://www.principalam.com/us/insights/asset-allocation/6040-portfolio-dead" target="_blank" rel="noreferrer noopener" data-t-l=":b|z|k|${u}" class="gnt_ar_b_a">was dead</a>, explained why it might no longer be <a target="_blank" href="https://www.investopedia.com/articles/financial-advisors/011916/why-6040-portfolio-no-longer-good-enough.asp" target="_blank" rel="noreferrer noopener" data-t-l=":b|z|k|${u}" class="gnt_ar_b_a">good enough</a> to sustain a balanced portfolio, and offered up <a target="_blank" href="https://www.blackrock.com/us/individual/insights/60-40-portfolios-and-alternatives" target="_blank" rel="noreferrer noopener" data-t-l=":b|z|k|${u}" class="gnt_ar_b_a">investment alternatives</a>. </p><aside aria-label="advertisement" class="gnt_m gnt_x gnt_x__lbl gnt_x__al"/><p class="gnt_ar_b_p">The reason: 2022. Bonds suffered one of their all-time worst years, buffeted by a one-two punch of spiraling inflation and rising interest rates. </p><p class="gnt_ar_b_p"><strong>Capitalize on high interest rates:</strong> <a target="_blank" target="_blank" rel="noopener" data-t-l=":body nav (cd)|e|auto spike click:6|${u}" class="gnt_ar_b_a" href="https://www.usatoday.com/money/blueprint/banking/cds/best-cd-rates/">Best current CD rates</a></p><p class="gnt_ar_b_p">As 2024 draws to a close, however, investors are warming again to 60/40. </p><figure class="gnt_em gnt_em_img"><img class="gnt_em_img_i" style="height:441px" fetchpriority="high" data-g-r="lazy" src="https://www.usatoday.com/gcdn/authoring/authoring-images/2024/11/06/USAT/76091604007-20241106-t-142800-z-822687959-rc-2-qzaa-3-szws-rtrmadp-3-usaelectionstocks.JPG?width=660&height=441&fit=crop&format=pjpg&auto=webp" srcset="https://www.usatoday.com/gcdn/authoring/authoring-images/2024/11/06/USAT/76091604007-20241106-t-142800-z-822687959-rc-2-qzaa-3-szws-rtrmadp-3-usaelectionstocks.JPG?width=1320&height=882&fit=crop&format=pjpg&auto=webp 2x" decoding="async" alt="A trader wears a hat in support of Republican Donald Trump, after he won the U.S. presidential election, at the New York Stock Exchange (NYSE) in New York City, Nov. 6, 2024."/></figure><h2 class="gnt_ar_b_mt">Should investors still follow the 60/40 rule?</h2><p class="gnt_ar_b_p">In a <a target="_blank" href="https://corporate.vanguard.com/content/corporatesite/us/en/corp/articles/global-60-40-portfolio-steady-as-it-goes.html" target="_blank" rel="noreferrer noopener" data-t-l=":b|z|k|${u}" class="gnt_ar_b_a">recent report</a>, the Vanguard investment firm reaffirmed 60/40 as “a great starting place for long-term investors, and that is as true today as any time in history.” </p><p class="gnt_ar_b_p">Other investment experts concur. </p><p class="gnt_ar_b_p">“Sixty-forty is still a good benchmark for a balanced portfolio,” said Jonathan Lee, senior portfolio manager at U.S. Bank. </p><aside aria-label="advertisement" class="gnt_m gnt_x gnt_x__lbl gnt_x__al"/><p class="gnt_ar_b_p">And Todd Jablonski, global head of multi-asset investing for Principal Asset Management, considers the 60/40 rule “very much alive. I could make some <a target="_blank" href="https://www.dictionary.com/browse/the-reports-of-my-death-are-greatly-exaggerated" target="_blank" rel="noreferrer noopener" data-t-l=":b|z|k|${u}" class="gnt_ar_b_a">Mark Twain jokes</a>,” he...</p></div> <style> .wrapper { text-align: center; } </style> <div class="wrapper"> <a class="button" href ="https://www.usatoday.com/story/money/2024/11/09/stocks-vs-bonds-60-40-rule/76087933007/">Read more <span>➤</span></a> </div>
