My people, e be like say Vanguard don wahala for investment matter as we dey enter 2026.

Dem don carry new motto wey say make you drop that 60% equity and 40% fixed income wey everybody dey shout about since. Dem don advise make we do am reverse — take 40% equity (20% US stocks and another 20% international stocks) and 60% fixed income. Wetin dem talk? E get as e be. Roger Aliaga-Diaz, the big oga wey dey lead portfolio construction for Vanguard talk say na big change, e no be small wahala, almost like earthquake for investors.

Vanguard dey reason say investors fit see beta (returns) for high-quality U.S. and foreign bonds wey go dey around 4% to 5%. Na lower risk, but di koko be say non-US equities go dey perform better than US stocks for the next ten years. Dem dey gree say international stocks fit give 5.1% to 7.1% return per year — see as dem dey run things.

Now, if you dey think say Vanguard advice na special for only short-term people, e no be so! Na medium-term investors dem dey focus on too, especially with di fear say AI bubble fit bust. You know say di ‘Magnificent Seven’ wey get Apple, Microsoft, Amazon, etc. be di main player for S&P 500? E be like say dem don dey overvalue, and dat na serious gobe.

Aliaga-Diaz drop this serious bombshell: “We no wan make di market overvaluation be our opportunity, but rather our risk.” E dey fear say if AI no deliver, di US fixed income go still get your back — you go no want miss that risk, abeg o!

But wetin happen to retirees wey dey save for long run? Financial experts dey yan say e possible make dem shift am to this new 40/60 strategy, but make you shine your eyes well. Tyson Sprick talk say e go dey make sense, especially as di market dey play strong. Remember say diversification no be joke, e dey crucial. No make fear of missing out (FOMO) carry you enter sofa.

Lazetta Rainey Braxton, another planner, follow talk say if you don dey retire, you no need wahala for big growth — just protect wetin you don gather. Shift to 40/60 fit jive well for you, no dey chase returns like say na chasing gold.

But plenty financial planners no agree with 40/60 strategy. Dem dey hold on to di 60/40 plan wey dey balance growth with stability and na im fit help you long-term, especially as you near retirement.

If you dey retire in just three to five years, switching to a less risky portfolio — dey gist about smaller companies or bonds — go help carry the load well. Na why Target Date Funds dey hot cake for retirement savers now.

Big man Joseph Davis from Vanguard still gree sey no need for drastic selling. “Make you carry waka soft,” im talk. Na so e go better if you just diversify small, maybe try di small-cap companies or some international stocks. Dem markets dey sweet as di U.S. don dey take lead since.

Aliaga-Diaz confirm say “Bottom line be say we no go get better returns with 40/60; we go still dey see di same returns as 60/40, but with less risk.” Dem sabi wetin dem dey talk; na for our own good.