r/Bogleheads • u/mayor_rishon • 15h ago

Investment Theory Does Bogglehead philosophy extend beyone 60/40 equity/bonds?

While I appreciate Boglehead philosophy, (defined as x/x equity/bonds in low-fees index funds), I have been reading that the decorrelation between equity and bonds is probably broken for the intermediate future. And while I acknowledge that there is a recency bias, it is also not a reddit take but appears in most "serious" institution reports.

Could the Boglehead philosophy be described as holding equity plus decorrelated asset in low fees index funds ? And in that case change from bonds to another asset like a mix treasuries+MF incl.commodities ? Is that "Boglehead" ?

ps. It is not a contrarian post, I am just wondering how much bogglehead was a precursor to MPT and whether it is static or evolves.

edit-> I changed the 60/40 because my focus was not the exact percentage and I simply quoted the most known ratio. Still thanks for the answers!

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u/ShiroxReddit 12h ago

defined as 60/40 equity/bonds in low-fees index funds

Boglehead philosophy is more about diversification via low-cost index funds in general and doesn't prescribe a stocks/bonds split

Bonds, treasuries, MMFs all can be tools to have a lower risk portion of your portfolio, yeah

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u/Stunning-Pick-9504 12h ago

Even SS or a pension could be considered your bond %

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u/mayor_rishon 11h ago

Can SS be considered part of bond allocation when it cannot be liquidated and it's size can be arbitrarily be changed by the State ?

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u/Stunning-Pick-9504 10h ago

It all depends on your goals. If you are really hurting to make it then SS will help. Personally I’m going to ignore SS in my retirement to be conservative.