Is investing in bonds really necessary in your 20s?
I'm looking at starting a Couch Potato retirement portfolio. The asset mix they recommend for the "Complete Couch Potato" is this:
[INDENT]Canadian equity 20% iShares S&P/TSX Capped Composite (XIC)
US equity 15% Vanguard Total Stock Market (VTI)
International equity 15% Vanguard Total International Stock (VXUS)
Real estate investment trusts 10% BMO Equal Weight REITs (ZRE)
Real return bonds 10% iShares DEX Real Return Bond (XRB)
Canadian bonds 30% iShares DEX Universe Bond (XBB)[/INDENT]
The mix is 40% bonds. I'm 23. Should I really have 40% of my portfolio in bonds, when I have 40+ years for my investments to grow? If not, what is a good percentage to have in bonds at my age?