Investment With Planned 15 Years Active Life

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Topic Author
amateur
Posts: 14
Joined: Sun Jan 22, 2012 5:23 pm

Investment With Planned 15 Years Active Life

Post by amateur »

We both are retired, I plan to actively live another 15 years if Nature doesn’t call me earlier. My wife and I have SS that covers basic living cost, including housing, we have total liquid asset 800 K, so RMD and saving will cover any extra expense. Do I still need to worry about all those “investments”? We don’t reject legacy but don’t aim at it at all. Welcome and thank you to offer your advice.
Last edited by amateur on Fri Dec 03, 2021 10:38 pm, edited 4 times in total.
Triple digit golfer
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Re: Investment With Planned 15 year Active Life

Post by Triple digit golfer »

This is entirely up to you. On one hand, you don't need to take risk. On the other, you are not using your portfolio for living expenses, so you can afford to take risk with it.

It depends on your personality, really. Even if you are conservative, I'd hold at least 20-30% in stocks to offer the potential for at least keeping up with inflation.

What's the highest percentage loss of your portfolio that you could tolerate? Double that, and that's your stock allocation.

If you're not sure and don't care, go 40/60 stocks/bonds. This is a common and reasonable portfolio for most retirees.

Vanguard's target retirement fund for retirees uses 30% stocks, I believe.

Best of luck to you.
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Sandtrap
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Re: Investment With Planned 15 Years Active Life

Post by Sandtrap »

amateur wrote: Fri Dec 03, 2021 10:15 pm We both are retired, I plan to actively live another 15 years if Nature doesn’t call me earlier. My wife and I have SS that covers basic living cost, including housing, we have total liquid asset 800 K, so RMD and saving will cover any extra expense.

Do I still need to worry about all those “investments”?

We don’t reject legacy but don’t aim at it at all. Welcome and thank you to offer your advice.
1. What do you worry about those investments?
a) loss of extra income?
b) loss of principle?

2. For more comprehensive suggestions, consider posting for a portfolio review or adding more information for better context to your question, using the "pencil icon" for your original post. Like this:
Asking Portfolio Questions
https://www.bogleheads.org/forum/viewt ... =1&t=6212

3. Can you give more details about "those investments"?

j :D
Wiki Bogleheads Wiki: Everything You Need to Know
dbr
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Joined: Sun Mar 04, 2007 8:50 am

Re: Investment With Planned 15 Years Active Life

Post by dbr »

Since RMD comes from those investments you would probably want to think about what you have. At the least you would identify what extra expense you have. I'm not sure I understand what extra income is meant by "saving."

You can think about what you have without worrying about it.

I agree it makes sense to post what these investments are and also how much extra spending you are thinking of.

Another point is that not-active live still costs money, maybe more than active life. It is not easy to actually plan future life.
Topic Author
amateur
Posts: 14
Joined: Sun Jan 22, 2012 5:23 pm

Re: Investment With Planned 15 Years Active Life

Post by amateur »

Sandtrap wrote: Sat Dec 04, 2021 7:36 am
amateur wrote: Fri Dec 03, 2021 10:15 pm We both are retired, I plan to actively live another 15 years if Nature doesn’t call me earlier. My wife and I have SS that covers basic living cost, including housing, we have total liquid asset 800 K, so RMD and saving will cover any extra expense.

Do I still need to worry about all those “investments”?

We don’t reject legacy but don’t aim at it at all. Welcome and thank you to offer your advice.
1. What do you worry about those investments?
a) loss of extra income?
b) loss of principle?

2. For more comprehensive suggestions, consider posting for a portfolio review or adding more information for better context to your question, using the "pencil icon" for your original post. Like this:
Asking Portfolio Questions
https://www.bogleheads.org/forum/viewt ... =1&t=6212

3. Can you give more details about "those investments"?

j :D
I like to clarify “those investments “, it just means all those different investment strategies, AA, etc, nothing with dealing of my portfolio.
After discussion with a close friend of mine. I convert the portfolio to bond funds and money market, at least as my parking arena.
Topic Author
amateur
Posts: 14
Joined: Sun Jan 22, 2012 5:23 pm

Re: Investment With Planned 15 Years Active Life

Post by amateur »

Saving just means cash account, after tax. For those extra spending, most is related with traveling while we can.
I want to cut non active life as much as possible, that is why I mentioned planned active life. In short, not active life isn’t a life for retiree like me.
dbr wrote: Sat Dec 04, 2021 7:57 am Since RMD comes from those investments you would probably want to think about what you have. At the least you would identify what extra expense you have. I'm not sure I understand what extra income is meant by "saving."

You can think about what you have without worrying about it.

I agree it makes sense to post what these investments are and also how much extra spending you are thinking of.

Another point is that not-active live still costs money, maybe more than active life. It is not easy to actually plan future life.
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Sandtrap
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Re: Investment With Planned 15 Years Active Life

Post by Sandtrap »

amateur wrote: Fri Dec 03, 2021 10:15 pm We both are retired, I plan to actively live another 15 years if Nature doesn’t call me earlier. My wife and I have SS that covers basic living cost, including housing, we have total liquid asset 800 K, so RMD and saving will cover any extra expense. Do I still need to worry about all those “investments”? We don’t reject legacy but don’t aim at it at all. Welcome and thank you to offer your advice.
Clarifications and verifications needed for a well thought out actionable response:

Per your data:
1. Retired
2. 15X = planned annual living expenses (about age 80)?
3. Social Security covers annual living expenses for now
4. 800K in Tax Advantaged accounts and savings to cover extra expenses.

Your question: "Do I have enough?"

Is this correct?

Questions:
1. Any projected increases in annual living expenses? (health care, debt, etc?)
2. Any housing needs expected to change. IE: nursing/retirement home, at home care, etc.
3. Nature of tax advantaged accounts and savings? (allocation, etc, to meet any increase in spending) ie: withdrawal rate.
4. How vulerable are your "investments" to; inflation, sequence of returns risk, etc?

j :D
Wiki Bogleheads Wiki: Everything You Need to Know
Topic Author
amateur
Posts: 14
Joined: Sun Jan 22, 2012 5:23 pm

Re: Investment With Planned 15 Years Active Life

Post by amateur »

Thank you for helpful info, but I’d like to clarify,

The item 2 is redundant since 3 and 4 cover the item 2. I will not consider any long term care arrangement, that is why I can talk about planned years, in a sense I want to avoid such scenario. I understand 15 years ACTIVE life is the maximum number If I am lucky to reach it.

To answer your 4 questions, I use a coarse and conservative approach, 800 K should cover all extra expense for 15 years, in worse case we have home equity to tape. Currently I park our fund in bond fund and money market.
Sandtrap wrote: Sun Dec 05, 2021 7:07 am
amateur wrote: Fri Dec 03, 2021 10:15 pm We both are retired, I plan to actively live another 15 years if Nature doesn’t call me earlier. My wife and I have SS that covers basic living cost, including housing, we have total liquid asset 800 K, so RMD and saving will cover any extra expense. Do I still need to worry about all those “investments”? We don’t reject legacy but don’t aim at it at all. Welcome and thank you to offer your advice.
Clarifications and verifications needed for a well thought out actionable response:

Per your data:
1. Retired
2. 15X = planned annual living expenses (about age 80)?
3. Social Security covers annual living expenses for now
4. 800K in Tax Advantaged accounts and savings to cover extra expenses.

Your question: "Do I have enough?"

Is this correct?

Questions:
1. Any projected increases in annual living expenses? (health care, debt, etc?)
2. Any housing needs expected to change. IE: nursing/retirement home, at home care, etc.
3. Nature of tax advantaged accounts and savings? (allocation, etc, to meet any increase in spending) ie: withdrawal rate.
4. How vulerable are your "investments" to; inflation, sequence of returns risk, etc?

j :D
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Sandtrap
Posts: 19591
Joined: Sat Nov 26, 2016 5:32 pm
Location: Hawaii No Ka Oi - white sandy beaches, N. Arizona 1 mile high.

Re: Investment With Planned 15 Years Active Life

Post by Sandtrap »

Reading that might help:

“The Ages of the Investor:Life Cycle Investing”
By W. Bernstein
Available Amazon (softcover)
(Kindle version is not as good)

It gives a comprehensive idea of how investment assets and income scale through pre and post retirement and in the later years.

I hope this is helpful for you.
Wiki Bogleheads Wiki: Everything You Need to Know
Topic Author
amateur
Posts: 14
Joined: Sun Jan 22, 2012 5:23 pm

Re: Investment With Planned 15 Years Active Life

Post by amateur »

Thanks much, will read it.
Sandtrap wrote: Mon Dec 06, 2021 7:11 pm Reading that might help:

“The Ages of the Investor:Life Cycle Investing”
By W. Bernstein
Available Amazon (softcover)
(Kindle version is not as good)

It gives a comprehensive idea of how investment assets and income scale through pre and post retirement and in the later years.

I hope this is helpful for you.
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