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Lumifer comments on Open thread, Nov. 23 - Nov. 29, 2015 - Less Wrong Discussion
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Given this definition, I don't see why only stocks and bonds qualify.
True, but given that you said "cash and CDs" I thought your idea of cash excludes deposits. Still, there are more asset classes than equity and fixed income.
My claim is that equity and fixed income are the important pieces for reaching that goal. With a total stock index fund and a total bond index fund you can achieve these goals almost as well as any other more complicated portfolio. Additional asset classes can add additional diversification or hedge against specific risks. What other asset classes do you have in mind? Real estate? Commodities? Currencies?
Fair enough. I was unclear.
They are, of course, important. The question is whether they are the only important pieces.
Real estate is the most noticeable thing here, given how for a lot of people it is actually their biggest financial investment (and often highly leveraged, too). Commodities and such generally require paying at least some attention to what's happening and the usual context of financial discussions on LW is the "into what can I throw my money so that I can forget about it until I need it?"