Use PIRMX in deferred comp plan during distribution?

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squirrel1963
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Use PIRMX in deferred comp plan during distribution?

Post by squirrel1963 »

I have a deferred comp plan from a previous megacorp, which will payout in 5 years. First payout was 10/2021 and last payout will be 8/2026.
I am retired now and these distributions will cover about 3/4 of my floor income until 8/2026.

The question is which funds I should be keeping in this account, given the relatively short time frame. This account is about 3% of my assets so I don't mind taking some reasonable risk. All things being equal I would have bought a TIPS fund, but unfortunately is not available.

Excluding equities, and excluding high cost funds, the choices left are:
* Federal money market fund currently yielding 0.6%
* Vanguard Total Bond Market
* Pimco Inflation Response Multi-Asset fund (PIRMX - https://www.pimco.com/en-us/investments ... -fund/inst)

PIRMX has the following asset allocation:
50% inflation linked bonds
21% commodities
15% currencies
10% REIT
7% precious metals
-8% other (not sure what this is)


I can't say I'm a super fan of their currency exposures, but the rest looks interesting.

So what I'm thinking I could either do
50% money market
50% total bond market

OR
40% money market
30% total bond market
30% PIRMX


Thoughts?
LMP | Liability Matching Portfolio | safe portfolio: TIPS ladder + I-bonds + Treasuries | risky portfolio: US stocks / US REIT / International stocks
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