Episode 281: Lifecycle Asset Allocation, and Retiring Successfully with Justin King

Traditional lifecycle investment advice, which advocates for shifting from stocks to bonds as retirement approaches, often relies on flawed assumptions regarding volatility as a measure of risk. Empirical data indicates that an all-stock portfolio—comprising 50% domestic and 50% international equities—consistently outperforms target-date funds and balanced strategies across wealth accumulation, retirement consumption, and bequest objectives. Government pensions function as a significant, inflation-indexed fixed-income asset, which may negate the need for additional bond holdings in a portfolio. Beyond asset allocation, insurance strategies for incorporated professionals require careful structuring: life insurance is typically optimal within a corporation, while disability insurance is best held personally to ensure tax-free benefits. Ultimately, a successful retirement transcends financial metrics, requiring intentional focus on vitality, purpose, and long-term health management to navigate the complexities of a potentially thirty-year retirement horizon.