70/30 - 60/40 AA in accumulation stage

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JD2775
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70/30 - 60/40 AA in accumulation stage

Post by JD2775 »

Just curious how many of you are 70/30 - 60/40 in the accumulation stage? Seems I am seeing more and more people mentioning not to add bonds until retirement, or close to retirement.

I just wanted to see if there are people out there still 10-20 years from retirement and in that AA range shown above?

I am 70/30 and prob 10-15 years out from retirement. I am comfortable with that, maybe TOO comfortable though. Not sure.

Not sure this is actionable so close if needed, I was just curious if others were in the same boat as me.
rockstar
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Re: 70/30 - 60/40 AA in accumulation stage

Post by rockstar »

I was 70/30 last year. I'm now roughly 97/3 since bond yields went close to zero on the short end and negative real on the long end.
KlangFool
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Re: 70/30 - 60/40 AA in accumulation stage

Post by KlangFool »

OP,

1) What are your numbers?


2) What is your saving rate in terms of your annual expense? 50%? 100%?


3) If you can reach your number with 70/30, why should you care about others' AA? It should not matter to you a bit.


KlangFool
Marseille07
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Re: 70/30 - 60/40 AA in accumulation stage

Post by Marseille07 »

Nope, too conservative in my view. I started a Boglehead portfolio 80/20 then moved up to 90/10 and planning to stay this way forever. I'm probably 1~2 years away from moderate FIRE, depending on how my risky trading goes.
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JD2775
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Re: 70/30 - 60/40 AA in accumulation stage

Post by JD2775 »

KlangFool wrote: Tue Dec 22, 2020 1:09 pm OP,

1) What are your numbers?


2) What is your saving rate in terms of your annual expense? 50%? 100%?


3) If you can reach your number with 70/30, why should you care about others' AA? It should not matter to you a bit.


KlangFool
Hi Klang,

1. Honestly havent figured that out yet, as far as expenses needed. Living in the Bay Area and renting, no idea if I will stay here though long term or move somewhere less expensive and see about getting a house eventually. I am just trying to save as much as I can

2. Savings rate this year was a little higher than normal, maybe about 60%. Which was great. If I had to guess that is > 100% of my actual expenses needed at this given time
helloeveryone
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Re: 70/30 - 60/40 AA in accumulation stage

Post by helloeveryone »

JD2775 wrote: Tue Dec 22, 2020 1:05 pm Just curious how many of you are 70/30 - 60/40 in the accumulation stage? Seems I am seeing more and more people mentioning not to add bonds until retirement, or close to retirement.

I just wanted to see if there are people out there still 10-20 years from retirement and in that AA range shown above?

I am 70/30 and prob 10-15 years out from retirement. I am comfortable with that, maybe TOO comfortable though. Not sure.

Not sure this is actionable so close if needed, I was just curious if others were in the same boat as me.
I was 75:25 then recently decided 80:20 was my happy medium. But we buy 100% stock index fund then periodically rebalance. it's easier that way (rather than trying to buy bonds with monthly paycheck). Closer to retirement or in retirement I'll definitely have to be more cautious managing dividends and how I rebalance etc...
life in slices
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Re: 70/30 - 60/40 AA in accumulation stage

Post by life in slices »

OP - this thread has some good info in it
viewtopic.php?f=10&t=324381
KlangFool
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Re: 70/30 - 60/40 AA in accumulation stage

Post by KlangFool »

JD2775 wrote: Tue Dec 22, 2020 1:13 pm
KlangFool wrote: Tue Dec 22, 2020 1:09 pm OP,

1) What are your numbers?


2) What is your saving rate in terms of your annual expense? 50%? 100%?


3) If you can reach your number with 70/30, why should you care about others' AA? It should not matter to you a bit.


KlangFool
Hi Klang,

1. Honestly havent figured that out yet, as far as expenses needed. Living in the Bay Area and renting, no idea if I will stay here though long term or move somewhere less expensive and see about getting a house eventually. I am just trying to save as much as I can

2. Savings rate this year was a little higher than normal, maybe about 60%. Which was great. If I had to guess that is > 100% of my actual expenses needed at this given time
JD2775,

It is very simple.

1) Use your current annual expense as the estimate. Use 25X to 50X as your targeted numbers.


2) If that is true, you can reach your number with 70/30. Why should you do anything else?


KlangFool
theorist
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Re: 70/30 - 60/40 AA in accumulation stage

Post by theorist »

JD2775 wrote: Tue Dec 22, 2020 1:05 pm Just curious how many of you are 70/30 - 60/40 in the accumulation stage? Seems I am seeing more and more people mentioning not to add bonds until retirement, or close to retirement.

I just wanted to see if there are people out there still 10-20 years from retirement and in that AA range shown above?

I am 70/30 and prob 10-15 years out from retirement. I am comfortable with that, maybe TOO comfortable though. Not sure.

Not sure this is actionable so close if needed, I was just curious if others were in the same boat as me.
We are 50, so 10-15 years away from retirement by traditional measures. Also live in VHCOL area, so maybe our situations are similar. We are at 70/30 in terms of our IPS (though recently the equity fraction has drifted a bit above where I should rebalance, and I’m going to have to take care of that). It isn’t clear what the bonds do for us in terms of growth (probably detract due to inflation!), but I value the security and peace of mind. We have probably already hit “our number” anyway, but are saving around 35 - 40% of gross income per year, so — markets willing — the invested assets will grow into the very safe range, and the difference between 70/30 and 90/10 will never matter anyhow.

In fact if anything, since passing what is probably “our number,” I’ve wondered whether dialing down a bit might be wise.
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Re: 70/30 - 60/40 AA in accumulation stage

Post by qwertyjazz »

I am surprised KF did not comment on it. It is his point that you do not invest just for retirement. To reach retirement, you have to stay employed. Especially living in VHCOL area bonds are needed for safety. It is a function of your variance in human capital, your expenses and your savings/investments as to how much fixed income is safe.
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59Gibson
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Re: 70/30 - 60/40 AA in accumulation stage

Post by 59Gibson »

50/25/25

Semi retired(work p/t) @45. Have about 42-43x in taxable/deferred/roth. Cash earmarked for house purchase sometime in 2021. After purchase will prob stay between 50/45/5 and 60/35/5.
bck63
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Re: 70/30 - 60/40 AA in accumulation stage

Post by bck63 »

JD2775 wrote: Tue Dec 22, 2020 1:05 pm Just curious how many of you are 70/30 - 60/40 in the accumulation stage? Seems I am seeing more and more people mentioning not to add bonds until retirement, or close to retirement.

I just wanted to see if there are people out there still 10-20 years from retirement and in that AA range shown above?

I am 70/30 and prob 10-15 years out from retirement. I am comfortable with that, maybe TOO comfortable though. Not sure.

Not sure this is actionable so close if needed, I was just curious if others were in the same boat as me.
I'm 30/70 here and very happy. I rebalance only one way, stocks into cash/bonds. When the market goes down I leave stocks alone, when it goes to 1% or more over my target, I rebalance, peeling off of the stocks. I now have 17 years worth of expenses in fixed income, with five years go to till retirement (at age 62). I'm very conservative with low expenses, mortgage almost paid off and no other debt. I save 41% of my gross income. I will be living off savings and SS only. I will stay at 30/70 in retirement, withdrawing from the overweighted asset as I go along.
BalancedJCB19
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Re: 70/30 - 60/40 AA in accumulation stage

Post by BalancedJCB19 »

I'm 56 and when I first started to save for retirement, I didn't know the difference between a stock and a bond. I was 50/50 for many years when I was starting at zero. Now all these years later and a bit wiser and a lot more then zero in my portfolio, if I had to do it all over again, I was start with 100% stocks and gradually go to 60/40.

I am current 60/40 and will stay there for life.

However, as one poster said, if you can get to your goals via a smoother ride, why not. Jack Bogle has often said how an average investor can hold something like the balanced index fund for life and that will be a very solid investing and retirement plan. That is what my plan has been for quite some time now.
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Devil's Advocate
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Re: 70/30 - 60/40 AA in accumulation stage

Post by Devil's Advocate »

I'm probably ~75/25.

I'm in my mid 40s and probably will work full time another 10 years and then hope to be part time after that. My 401k had a nice 25% boost this year thanks to a timely liquidation of my funds at previous custodian and then bought near the bottom with my new 401k custodian.

I plan to be ~65/35 at retirement.

DA
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KidIcarus
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Re: 70/30 - 60/40 AA in accumulation stage

Post by KidIcarus »

Vanguard Target Retirement 2030 Fund (VTHRX) is 67/33 at 10 years out.
Vanguard Target Retirement 2035 Fund (VTTHX) is 75/25 at 15 years out.
Vanguard Target Retirement 2040 Fund (VFORX) is 82/18 at 20 years out.

Given you said you are probably 10-15 years out @JD2775, 70/30 doesn't sound unreasonable to me based on those Vanguard target date funds.
Tib
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Re: 70/30 - 60/40 AA in accumulation stage

Post by Tib »

KlangFool wrote: Tue Dec 22, 2020 1:20 pm
JD2775,

It is very simple.

1) Use your current annual expense as the estimate. Use 25X to 50X as your targeted numbers.


2) If that is true, you can reach your number with 70/30. Why should you do anything else?


KlangFool

For most of us there is not a realistically attainable "number" beyond which additional money would have little utility. If a standard of living in retirement higher than one's current standard might well be achieved without too much risk---we all have to judge for ourselves how much is too much---one might accept a lower chance of achieving at least one's current standard in exchange for a higher chance of an improved standard. Of course, this is not a comment on what allocation, in the current environment, would afford the OP the best chance of at least a comfortable retirement and what allocation the best chance for a more affluent retirement, just a general response to question 2.
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Re: 70/30 - 60/40 AA in accumulation stage

Post by KlangFool »

Tib wrote: Tue Dec 22, 2020 5:41 pm
KlangFool wrote: Tue Dec 22, 2020 1:20 pm
JD2775,

It is very simple.

1) Use your current annual expense as the estimate. Use 25X to 50X as your targeted numbers.


2) If that is true, you can reach your number with 70/30. Why should you do anything else?


KlangFool

For most of us there is not a realistically attainable "number" beyond which additional money would have little utility.

That statement is irrelevant as per OP's saving rate. If you are interested in your own situation, start a new topic with your numbers. We can show you why it may not matter in your context too.


KlangFool
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skipper
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Re: 70/30 - 60/40 AA in accumulation stage

Post by skipper »

My first post in a long time. 51 and just started getting serious about investing two years ago when a friend encouraged me to start SAVING (second most important factor in any investment and/or retirement plan) rather than being the big consumer that I was. My IPS says Bonds = Age - 20 until 60/40 then stand fast, which I thought was pretty aggressive at the time, given the study I had done here and in the recommended reading, even though I had little saved (meaning I was way behind). I'm still behind by most published standards, but I live VLCOL with zero debt (first most important factor in any investment and/or retirement plan) and am up to about 12x so far. The Fidelity online planning tool thinks I can reach my retirement goal. I only max out 401(k), HSA, and one Roth; the rest is liquid cash savings, also according to my IPS. I rebalance annually only by contribution adjustments between VBTLX and VFIAX in the 401(k) as much as possible, which gives me something to do other than watch my contributions grow; this year it's 90% toward bonds to hit 32% by age 52.

I've seen all the recent commentary on avoiding bonds until retirement; I don't remember seeing it two years ago. Even as behind as I was then, I never considered anything less than Age - 20 (which was 71/29), but I'm not a risk taker. The thought I've been having lately is, "will the risk profile of bond funds change from their historical position relative to stocks in the future?" IOW, will we be able to rely on bond funds to offset volatile equity? There are headlines about this in my news feed; I avoid reading the articles.
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Triple digit golfer
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Re: 70/30 - 60/40 AA in accumulation stage

Post by Triple digit golfer »

I'm not quite that conservative, but I'm 80/20 at age 35 and plan on staying there indefinitely.
59Gibson
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Re: 70/30 - 60/40 AA in accumulation stage

Post by 59Gibson »

Without knowing someone's unique situation. I do not think you can take too much from other's allocation. There is a Huge range of yearly expenses (25-250k/yr) on BH. Some have pensions, max SS waiting, annuities, inheritances coming. But 60/40 is the golden standard, adjust from there accordingly.
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Re: 70/30 - 60/40 AA in accumulation stage

Post by Scott S »

When I joined here in 2008, the "age in bonds" rule of thumb got a lot of love as a simple way to start aggressive in one's earning years, then gradually become more conservative as one approached and then lived out their retirement. I had a little more appetite for risk than that so I chose (age-10)% instead, which was still fairly conservative compared to some. My plan was to taper down to 50/50 stocks/bonds at age 60, and then maintain that simple balance for the rest of my life.

That plan would have had me adjust to 70/30 this year when I hit my 40th birthday. However, in January or so, I stumbled onto the excellent "Ultimate Guide to Safe Withdrawal Rates" blog series from Early Retirement Now: https://earlyretirementnow.com/2016/12/ ... t-1-intro/ The fact that a stock allocation of less than 75% actually threatens longer retirements changed my mind about the glidepath to 50/50. I decided that a fixed 75/25 allocation made a lot more sense than my previous plan, and allowed my AA to rise to that balance as the events of this year unfolded. If that's "performance chasing", there's some data to back it up. :wink:
michaeljc70
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Re: 70/30 - 60/40 AA in accumulation stage

Post by michaeljc70 »

Pretty conservative for accumulating, but if that is what you need to sleep at night.... I wouldn't sleep well missing out on all the gains in the stock market and getting mediocre FI returns. Your 70/30 AA is what I am using in retirement. It depends on how you look at things. I will feel worse over the long run missing out on bigger returns from stocks than feeling bad over stock declines over the short term (which they typically are).
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Re: 70/30 - 60/40 AA in accumulation stage

Post by geerhardusvos »

JD2775 wrote: Tue Dec 22, 2020 1:05 pm Just curious how many of you are 70/30 - 60/40 in the accumulation stage? Seems I am seeing more and more people mentioning not to add bonds until retirement, or close to retirement.

I just wanted to see if there are people out there still 10-20 years from retirement and in that AA range shown above?

I am 70/30 and prob 10-15 years out from retirement. I am comfortable with that, maybe TOO comfortable though. Not sure.

Not sure this is actionable so close if needed, I was just curious if others were in the same boat as me.
The most important thing is your savings rate and sticking with whatever you choose. As long as you are above 60% equities, you will be fine. However, if you can stomach it, I highly recommend being in mostly equities. I am 98/2 and less than 10 years away from retirement.
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makeitcount
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Re: 70/30 - 60/40 AA in accumulation stage

Post by makeitcount »

We are 65/35 at 40 years old.
Some context: have ~25x saved, vested federal pension, save ~x per year, planning ~17 more years of work.
No need to swing for the fences at this point. If one is able, a high savings rate can be used as an alternative to an aggressive allocation.
shockwavesfan
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Re: 70/30 - 60/40 AA in accumulation stage

Post by shockwavesfan »

Wife and I are mid 30’s and invested aggressively. We are 100% equities and plan to be until atleast age 50.
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9-5 Suited
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Re: 70/30 - 60/40 AA in accumulation stage

Post by 9-5 Suited »

I would not recommend that allocation if you have debt, even a mortgage. You likely have a very high carrying cost of about $2,000 per year for every $100k of bonds offset by debt (assuming a 2% expected return gap).

But if you have no or minimal debt, there isn’t really a problem with that allocation as long as you are content with the likely range of outcomes for your life. It will mean (likely) that you’ll reach financial independence a little later and have a lower terminal portfolio value, but in exchange you can avoid a lot of worst case scenario outcomes that your 90-100% equities peers could face. Not that easy and very personal decision.
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Re: 70/30 - 60/40 AA in accumulation stage

Post by mokaThought »

Scott S wrote: Tue Dec 22, 2020 6:26 pm When I joined here in 2008, the "age in bonds" rule of thumb got a lot of love as a simple way to start aggressive in one's earning years, then gradually become more conservative as one approached and then lived out their retirement. I had a little more appetite for risk than that so I chose (age-10)% instead, which was still fairly conservative compared to some. My plan was to taper down to 50/50 stocks/bonds at age 60, and then maintain that simple balance for the rest of my life.

That plan would have had me adjust to 70/30 this year when I hit my 40th birthday. However, in January or so, I stumbled onto the excellent "Ultimate Guide to Safe Withdrawal Rates" blog series from Early Retirement Now: https://earlyretirementnow.com/2016/12/ ... t-1-intro/ The fact that a stock allocation of less than 75% actually threatens longer retirements changed my mind about the glidepath to 50/50. I decided that a fixed 75/25 allocation made a lot more sense than my previous plan, and allowed my AA to rise to that balance as the events of this year unfolded. If that's "performance chasing", there's some data to back it up. :wink:
This post is super helpful; thank you.



I started investing in 2007 and never truly felt the effects of the 2008 crash because it just meant stocks at bargain prices, and I was in the military, so the economy wasn’t going to kill my job.

Fast forward to the last couple of years, I had been age-in-bonds up until the pre-COVID stock market run-up, when I simply allowed the stock side to run up more than five percent. Call it greed or market timing if you like. The COVID crash stung, but I found myself disciplined enough to rebalance to age-minus-five (I am 35, therefore 70/30) and to continue to rebalance throughout.

I recently had decided to hold 70/30 until age 40 and then reconsider. Now I may just hold 70/30 fixed for life.
I gave in and went SCV. Wish me luck.
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Re: 70/30 - 60/40 AA in accumulation stage

Post by carminered2019 »

From age 26-49 I was 100% in equities and retired last year at 50 with a current AA of 75/25. I will never go lower then 70/30. Zero debt, high saving rate and 100% equities during accumulation age is the way to go.
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Re: 70/30 - 60/40 AA in accumulation stage

Post by avenger »

I’m 40. I’m currently 70/30. Planning early retirement in 10 years. Trying to decide if I should continue my glide path to 60/40 (1% per year) which was always the plan. I’m rethinking that plan, wanting to stay more aggressive. But that might be me being more greedy given equity valuations as of late.
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Re: 70/30 - 60/40 AA in accumulation stage

Post by Elsebet »

I'm 44 and am at 70/30 - my equities are 50% domestic and 20% international. I have my husband's (age 45) portfolio much more aggressive at 90/10 because he has much less saved.

Our only debt is the mortgage (which we plan to have paid off before retirement), we have no kids, and our expenses are very low. I plan to be done with full-time work at 58 if I stick with my current employer because I'll have a fully vested pension at age 58. If I don't stay with this employer or they get rid of the pension I would like to stop at 55. My husband will likely work until at least 59 or 60 if possible.
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Re: 70/30 - 60/40 AA in accumulation stage

Post by jand87 »

I am 33 years old and have my allocation at 85/15. I am also a government employee and should have a pretty solid pension. I have fluctuated between 15-20% bonds over the years. During March my bond allocation went up to 22%. I reduced it to 17% by purchasing stock. It's now down to exactly 14% as of this morning. I intent to leave it around 15% for the time being. If the stocks continue to run and it drops close to 10%, I will sell some stock and rebalance to 15%. If the market drops in the next few months, I will sell off some bonds to get back down to 15% and buy stocks.
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Re: 70/30 - 60/40 AA in accumulation stage

Post by Garco »

I'm in the "post-accumulation stage." (It is NOT "DECUMULATION.") Retired for last 6 years. I've reduced my risk from what was 70% to 75% equities when I was still employed to 60-40 as of today. I was thinking of moving to ca. 50-50 at the end of last year but the market (or my particular equity holdings) ran up. I'm inclined to keep the holdings that got me here.
Last edited by Garco on Wed Dec 23, 2020 12:22 pm, edited 2 times in total.
TSR
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Re: 70/30 - 60/40 AA in accumulation stage

Post by TSR »

I'm 42 and at approximately 70/30. I don't think it's all that conservative. I think there's been a steady erosion of caution after 2008 and the bull market of the last decade. The market has richly rewarded me and others, but that won't last forever. I think your plan is well within the range of reasonable, and therefore your success or failure will likely depend more on your sticking with that plan than on modifying the plan based on prevailing winds. Stay the course, keep saving, keep not touching it, and you'll be fine. (This is not to say that you can't reassess your risk tolerance or change your asset allocation over time; rather, it's just to say that this is unlikely to have a huge effect on you one way or another, so long as you don't give in to the temptation to change things based on market performance.)

Good luck!
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Re: 70/30 - 60/40 AA in accumulation stage

Post by Hector »

I am 70/30 and prob over 10-15 years out from retirement.
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HomerJ
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Re: 70/30 - 60/40 AA in accumulation stage

Post by HomerJ »

JD2775 wrote: Tue Dec 22, 2020 1:05 pm Just curious how many of you are 70/30 - 60/40 in the accumulation stage? Seems I am seeing more and more people mentioning not to add bonds until retirement, or close to retirement.

I just wanted to see if there are people out there still 10-20 years from retirement and in that AA range shown above?

I am 70/30 and prob 10-15 years out from retirement. I am comfortable with that, maybe TOO comfortable though. Not sure.

Not sure this is actionable so close if needed, I was just curious if others were in the same boat as me.
We were 66/33 for the first 10-15 years of accumulation (but remember bonds were paying like 5%)

And then 50/50 for the past 10 years, with a couple more years to go until retirement.

Lets me sleep at night...
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gjankow
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Re: 70/30 - 60/40 AA in accumulation stage

Post by gjankow »

46 years old. Wife 45.

Age - 15 in bonds has worked well to date.

Use Target 2030 exclusively in all tax deferred. Probably need to shift to 2035 shortly.

Simple and low cost.
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Re: 70/30 - 60/40 AA in accumulation stage

Post by invest4 »

Both of us are 48.

First added bonds in my mid-40s. I'm currently 60/40, but willing to drift upward (70/30) with better valuations (CAPE is currently almost 34). I added a reasonable bit during the downturn and maintained 60/40 with re-balancing at 5% intervals on the way back up.

I fully recognize I have less risk tolerance now than when I was in my 30s. I think it is mainly driven by the sense of having more actual $ to lose with increasingly less time to weather an extended storm. Overall, each person adjusts to their own risk tolerance, goals, and personal circumstances (are you on track to achieve your objectives, etc.).
TSR wrote: Wed Dec 23, 2020 11:17 am I'm 42 and at approximately 70/30. I don't think it's all that conservative. I think there's been a steady erosion of caution after 2008 and the bull market of the last decade. The market has richly rewarded me and others, but that won't last forever. I think your plan is well within the range of reasonable, and therefore your success or failure will likely depend more on your sticking with that plan than on modifying the plan based on prevailing winds. Stay the course, keep saving, keep not touching it, and you'll be fine. (This is not to say that you can't reassess your risk tolerance or change your asset allocation over time; rather, it's just to say that this is unlikely to have a huge effect on you one way or another, so long as you don't give in to the temptation to change things based on market performance.)

Good luck!
As we saw during March, a number of people came out of it having reconsidered things like the size of their emergency funds, risk allocation, etc. An extended version will likely bring similar results. I also agree that OPs plan is in the "range of reasonable".
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Re: 70/30 - 60/40 AA in accumulation stage

Post by tennisplyr »

This Vanguard tool might help you determine your AA:

https://personal.vanguard.com/us/FundsInvQuestionnaire
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Re: 70/30 - 60/40 AA in accumulation stage

Post by aristotelian »

46 and 73/27. Could retire today if needed but will work at least a couple more year to get to a more comfortable number, then reassess. All the numbers say that for longer retirement bonds reduce the chances of success even though they are less volatile. I think my allocation will settle in the range of 60/40 to 70/30. 2:1 stocks to bonds would split the difference and be an easy target to track.
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Re: 70/30 - 60/40 AA in accumulation stage

Post by pasadena »

This is a highly personal choice. Klang Fool asked you the right questions. You need to assess where you are, and where you want to go, before you map the path between the two.

Since you want example, I'm 46, with 10-14 years before retirement too (I'm secretly hoping and shooting for 9-10 :)) and my retirement accounts are 80/20. As I said, it's a personal choice based on my personal circumstances - I was a late starter so decided I needed higher risk to have a chance at reaching my goal, and I don't have a family to support. I don't really have a glide path, but I think I will probably end up at 60/40 upon retirement.

My "non-retirement" bucket is slightly more conservative (was 60/40, now 70/30), because it's supposed to fund (1) a house upon retirement, (2) act as a safety net against market and currency variation during the first few years of retirement until I have access to my 401(k). So the time horizon for that bucket is a lot shorter than retirement accounts.

Some will say that there isn't that much difference between 80/20 and 70/30, and they would probably be right. But it works for me, and I sleep like a baby.
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zarci
Posts: 180
Joined: Sat Jun 10, 2017 11:02 am

Re: 70/30 - 60/40 AA in accumulation stage

Post by zarci »

I'm 28 with 3x annual expenses in my portfolio and adding 2x annual expenses each year.

I'm 70 / 30 and comfortable with it. I am aware that bonds may lose some on a real basis during the next decade. Especially on a real, after cost and tax basis. And I'm fine with that.

I make one assumption for bonds in my asset allocation; That they should dampen any drops in the total portfolio value to <50%.

For all other concerns regarding bonds I'll quote Darth Vader:
It is... ...acceptable.
When my thoughts turn to the dark side of investing and i feel the hot breath of greed and impulse in my neck...

I remind myself that a higher savings rate is much more effective than a bump in my stock allocation.


This is the way.
houseofnine
Posts: 157
Joined: Sat Jan 11, 2020 4:40 pm

Re: 70/30 - 60/40 AA in accumulation stage

Post by houseofnine »

JD2775 wrote: Tue Dec 22, 2020 1:05 pm Just curious how many of you are 70/30 - 60/40 in the accumulation stage? Seems I am seeing more and more people mentioning not to add bonds until retirement, or close to retirement.

I just wanted to see if there are people out there still 10-20 years from retirement and in that AA range shown above?

I am 70/30 and prob 10-15 years out from retirement. I am comfortable with that, maybe TOO comfortable though. Not sure.

Not sure this is actionable so close if needed, I was just curious if others were in the same boat as me.
I’m 52, 3-5 years from FI and 70/20/5/5 (5-cash,5-gold). Most of the 20 is actually in a stable value fund in my 401k, so not technically bonds. I’ll continue to plow everything possible into SV, so long as the rate (3%) holds. The equities will likely outpace the SV contributions, so in that case I’ll need to direct some $ toward BND to maintain balance. Not the end of the world.
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