Yup! This is eerie. Similar to you, we bought $24K of I Bonds from May-Dec 2000 and another $4K from Jan-Aug 2001. And like you, we will be paying taxes on them sometime in the eight or nine years -- a good problem to have! Having those I Bonds during an unstable career as a defense contractor was a good feeling. I, too, decline to talk about my many dumb financial moves.Parkinglotracer wrote: ↑Sat Oct 22, 2022 3:37 amI may be biased too based upon the recent market pullback wishing I had a bit lower asset allocation of stocks. I guess asset allocation nirvana is a personal place found somewhere in between!You Know What I Mean wrote: ↑Fri Oct 21, 2022 7:24 pmI hear you, though I don't look at it as jumping into 100% stocks. They already have nearly $500k at ~100/0, with six or seven years to go till military retirement, so presumably are used to volatility. On the other hand, they could certainly invest less aggressively and be fine also. To some extent, it depends on the nature (pay level and security) of his post-military career. If it's a fun but low-paying, unstable job, then perhaps they would want to dial down the stocks.Parkinglotracer wrote: ↑Thu Oct 20, 2022 8:06 pmRetired from military in 2005 with 60/40 asset allocation and retired from 2nd career in 2020 with 70/30 asset allocation. I wouldn’t automatically jump into 100 % stock asset allocation at military retirement time just because one has a safe gov pension. In my experience people may take the amount of risk in their portfolio they need to be successful in their retirement or they may take the amount of risk they think is prudent at their point in life. If one has large nest egg saved even if the majority of one’s day to day living expenses are covered by their pension they may not sleep well at night knowing it is all exposed to the risk of the stock market. Vanguard has a good chart of stock bond asset allocations and the historical one year portfolio declines. While the chart prob hasn’t exactly rung true this year with the bond market declines one might look hard at how much portfolio pain they can swallow as they decide their future Asset allocation.You Know What I Mean wrote: ↑Wed Oct 19, 2022 8:07 pmI think so. We were 100% stocks when I retired (USAF 0-5), though I later bought a lot of Series I Savings Bonds in 2000-2001. We gradually downshifted to 60/40 about the time I fully retired (12 years later). Although one son had graduated from college and was on his own, we still had two in college. So, we were a little more conservative with 40% in fixed income. I like your 80/20.CoastieFIRE wrote: ↑Mon Oct 17, 2022 12:38 pm Questions:
1. General overview of investments and their alignment with our goals - below. I plan to stay 100% in stocks viewing my pension as our hedge against market volatility. Will likely allocate 10-20% into TSP G-Fund (US BONDS) when we fully retire. Good plan?
One other thing, about networking. This is something you probably already know. Retired military people generally love to talk to and help future retirees. I took a transition course -- I think it was Stan Hyman's -- and was encouraged to talk to everyone I could who had already been down that road. It was amazingly easy. Whether you know them well, only casually, not at all, a friend of a friend of a friend, etc. -- contact them. I'm not a very sociable person or great conversationalist, but I was surprised how easy it was to learn from others. Just like the great responses you've already gotten on this board, other ex-military folks will usually enjoy talking to you.
You're in a great position. I wish you good luck, but you won't need luck. Thank you for your service.
Perhaps I am biased because I wish we had kept a higher level of stocks.
Ps I bought 25K of I bonds in Oct 2000 which have been possibly my smartest move ever (I won’t mention my dumbest moves); I bet yours have worked out for you. In the next 8 years I need to figure out when to cash them in and pay the tax man.
How does this relate to the OP? I think it's really the same advice you mentioned: asset allocation is highly personal. It should be whatever the OP and spouse decide based on their personal situation. They both need to feel reasonably comfortable with it.