My wife and I (ages 35 and 38) have 25-30 years until we reach retirement age, and I'm doing some research regarding our asset allocation. In addition to various podcasts, articles, and online posts, I've read A Random Walk Down Wall Street, The Investor's Manifesto, and am currently reading Common Sense on Mutual Funds.
Our current plan is to move (in the next month or two) our retirement investments (~$100,000) from some Nationwide front-loaded funds to a combination of Vanguard index funds - probably largely composed of the Vanguard Total Stock Market Index and the Vanguard 500 Index Fund.
Although I'm currently leaning towards something like a 70%/30% stock/bond split, I'm wondering if there is any wisdom to holding a 100% stock portfolio (50% Vanguard Total Stock Market Index, 50% Vanguard 500 Index Fund) for the next 5-10 years.
I know we can't predict future returns, but wouldn't 25-30 years allow time to recover from a potential market downturn in the next few years? As we got older, we could begin to incorporate bonds.