DTalos wrote: ↑Thu Jun 24, 2021 4:03 pm
When financial planners recommend at least a 50% cash allocation for those over the age of 50, why are they so conservative? Do they assume their clients are no longer working or might become unemployed and that preserving assets takes precedence over the risk of growing the value of assets?
LOL @ financial planners. First I ever heard that.
My comments are based on having no pension: IMO, besides age, one also should take in to account how much one has squirreled away and base your risk tolerance on those two things.
I'll admit it's a knife-edge to walk for years, but I'm looking at 71 in August and it's worked for me.
"There are no new ideas, only forgotten ones." -- Amity Shlaes
78/22 currently. We have been gliding down to our target of 75/25 from 90/10 since we just reached FI. Plan is to stick to this allocation until we are ready to retire. Then we will go down to 70/30. Maximizing returns is no longer our priority.
42 and 45. 80/20 Stock/Bond. Stock is more Intl heavy vs. US. Something like 55/45.
“At some point you are trading time you will never get back for money you will never spend.“ |
“How do you want to spend the best remaining year of your life?“
84 years old. Widower. 60 % fixed income, 37 % equities (VTSAX), 3% "reserve" plus four SPIAs. All Vanguard. No international. Bond funds, short-term and intermediate, mostly US government and securitized.
75 years old, retired, no pension or annuity, our asset allocation is 50/50.
All fixed income is in Vanguard Intermediate-term Bond Index Fund (VBILX), no cash allocation other than whatever happens to be in our joint checking account (usually just a few months of expenses).
"Everything should be as simple as it is, but not simpler." - Albert Einstein |
Wiki article link: Bogleheads® investment philosophy
Ages 77/78. Retired for 7 years. In my main 403b account, my asset allocation is 60% equities, with the balance in fixed income and a modest amount in cash-like holdings. I've been retired since 2014. My spending money comes from RMD's and Social Security. Because I stayed invested in equities (initially higher than the current 60%), the face value of my 403b account has doubled since my retirement even while I've been taking RMD's.
Last edited by Garco on Tue Jul 27, 2021 9:46 am, edited 2 times in total.
Ages: 45 / 43
12 months or less to retirement
85% / 15% (stocks/bonds - moved to this last August after having been 90 /10 most of our careers).
Modest pensions start at 57 / 62
Will assess at 61 when we should take social security.
Pensions + social security will cover ordinary living expenses outside of health care.
late 40s, single parent, 70/30. I was already on a glide path but the stock growth beat it. with the pathetic bond return, I cannot really go too much into it. 10/10/10 TBM/muni/(cash/CD/I bond). on equity side: 50/20 US total market/international total market.
Just curious to see the portfolio split between stocks and bonds. For some people who might treat cash or CDs as bond-like for the purposes of this context that could be included too I suppose.
With this in mind my split I believe is something approximately around:
sailaway wrote: ↑Fri Dec 17, 2021 11:13 am
Are you one of the people who treat cash like bonds, hold cash separate or don't hold any more cash than needed for this month's spending?
Well right now I am in a bit of a different situation than I normally would be because I need to set aside a large amount of cash while I wait to finalize some exact numbers regarding taxes and a home purchase. So for now I am holding more cash than usual. But typically I probably don't plan to hold much more cash than I need for an emergency fund.
VartAndelay wrote: ↑Fri Dec 17, 2021 11:09 am
Just curious to see the portfolio split between stocks and bonds. For some people who might treat cash or CDs as bond-like for the purposes of this context that could be included too I suppose.
With this in mind my split I believe is something approximately around:
80% stocks
20% bonds
That's reasonable for someone who is in their 40s or 50s, or in their 60s+ who has a pension to cover most expenses or high net worth and is investing for heirs.
There's no one size fits all answer. Asset allocation is highly personal based on your willingness, ability and need to take risk.
I am currently 50-50, cash+bonds and domestic-international stocks. My domestic to international stock ratio is 80/20. I moved to 50/50 from 80/20 when I realized that I could live a long time on my bond allocation at 50/50, and that maybe not having all my risk be market risk would be wise.
I’m at a bit above 70/30 at 51. I’m thinking about derisking a bit more, but I’m ambivalent — hopefully still many years ahead, and I can go down to 65/35 at 55 maybe. The recommendations of allocations for 50 year olds from Fidelity, TRP and Morningstar all look pretty aggressive to me! (Fidelity and TRP have their 2035 target date funds at about 80/20 between stocks / bonds right now…)
80% stocks, 20% bonds. I hold a small amount of cash that I consider to be "bonds." In practicality, it's around 2% of the portfolio and therefore currently around 10% of the bond portion.
Presently 58/42, but it's not fixed. It includes the WBS with a variable amount of global bonds and a TIPS allocation on the side (and a global value stock fund portfolio, also). Redemptions will follow current percentages.
Distributions from GV will be invested in the TIPS funds until they're equal in value to the WBS bond funds. Right now they're about 49/51.
TIPS + GV + WBS
Last edited by pascalwager on Fri Dec 17, 2021 6:28 pm, edited 1 time in total.
LTT = Long-term Treasuries
TIPS = Broad TIPS fund (or Series I Savings Bonds or individual TIPS ladder)
STIG = Short-term investment grade corporate bond fund
LTT = Long-term Treasuries
TIPS = Broad TIPS fund (or Series I Savings Bonds or individual TIPS ladder)
STIG = Short-term investment grade corporate bond fund
LTT = Long-term Treasuries
TIPS = Broad TIPS fund (or Series I Savings Bonds or individual TIPS ladder)
STIG = Short-term investment grade corporate bond fund
LTT = Long-term Treasuries
TIPS = Broad TIPS fund (or Series I Savings Bonds or individual TIPS ladder)
STIG = Short-term investment grade corporate bond fund
Somewhere between 65% and 70% in equities is my comfort level now, while I'm still working. I may go a little more conservative when I retire.
The standard advice is not to hold bonds in taxable because the interest counts as ordinary income, but with rates near zero, that probably doesn't matter. The other standard advice is to tilt toward equities in Roth accounts because they have a longer time horizon than tax-deferred accounts.