Joe Ericson is 39 years old and has been a plumber for 20 years. He is married with 2 kids (9 and 10 years old). Joe is has $120,000 mortgage and his home is now worth $600,000. He is starting to build up his superannuation funds for his retirement in 20 years time. Assuming that his current financial situation is representative of his preference, what would be the most appropriate overall long asset allocation for Joe's retirement assets?
50% equity; 20% bonds; 10% cash; 20% commodity
50% equity; 30% bonds; 10% cash; 10% commodity
80% equity; 10% bonds; cash 0%; 10% commodity
80% equity; 10% bonds; cash 5%; 5% commodity