From Yahoo Finance: 2025-04-02 05:00:00

BlackRock CEO Larry Fink suggests shifting from a traditional 60/40 stock-bond split to a 50/30/20 mix including private assets like real estate. Fink notes the benefits of diversification and inflation protection from private assets. However, high investment minimums and income requirements pose challenges for individual investors.

Fink’s proposal aims to address retirement savings concerns as Social Security funds dwindle. Private assets, historically utilized by pension funds, offer return enhancements. Yet, the illiquidity and longer horizons of private assets may not suit all investors. Experts caution that fees and risk should be considered in portfolio decisions.

As interest rates affect the value of private assets, they may not provide the anticipated diversification from stocks and bonds. While investing in private assets can enhance returns, it may not be suitable for all investors due to liquidity and risk factors. Alternative strategies like real estate and infrastructure offer stable cash flows amidst market uncertainty.



Read more at Yahoo Finance: Forget 60/40. BlackRock’s Larry Fink wants investors to embrace 50/30/20.