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you might consider not reinvesting equity distributions and redirecting them to a money market fund or other fixed income product.

I would consider not having equity distributions reinvested and sent to bonds or other fixed income products. I tend not to make a major distinction between different fixed income options. e.g. for the most part they all have some value in offsetting equity risk. (The prospect of rising interest rates over the near term is also a consideration).
When the target allocation is reached you can decide to reinvest equity distributions if you desire. You might select slightly different equity products to have some equities that don't have huge cap gains. That may help future rebalancing needs since they may not have huge cap gains.

Most times these risks stay risks no matter what but some mitigation can occur. At retirement age and you think you have enough:

Market risk - mitigate by having a moderate allocation to equities. Tilt toward asset preservation vs going for growth.

Expense risk - mitigate by having no debt, good health and other insurance, delaying SS to maximize COLA income, moderate
enjoyment spending early in retirement.

Longevity risk - delaying SS to maximize COLA income, annuities,

The portfolio swings made a big difference to me in retirement and I'm in pretty good shape. While working you had a salary, maybe a bonus, company match to your 401k and your 401k contributions. Also you had employment.

In retirement I had none of the above and pretty soon not very employable. Also, pension not inflation adjusted, medical coverage but not dental, increased medical and dental expenses, etc. You learn over the years that your portfolio will dip but the dips feel worse, at least for me, in retirement.

age 75 and pension and social security almost equals normal expenses. Allocation is 45/55. Almost all equities located in taxable account with large capital gains. Don't reinvest taxable equity distributions. RMD is mostly not needed to cover expenses. Building low risk fixed income assets to help fund spouse's financial needs should I die first and she loses half my pension, her SS (mine is higher) and has to file single instead of joint. Also, gifting some early inheritance to both children.

I think having your fixed income somewhat varied can make sense. I have about 25% in FDIC products/ money markets, 25% in Short Term bond funds and 50% in intermediate bond funds - much of this in balanced funds but also some Inflation Protected fund. I don't overly fuss about the rebalancing of my fixed income assets - mainly focus on overall equity vs fixed income allocation - which is about 45/55. If I have a bit more in short term bond funds vs intermediate bond assets I don't consider that to be a big deal.

Much of my fixed income is in my TIRA and I take my RMD proportionately which tends to have a modest rebalance effect.

Times of personal unemployment often occur when there is an economic downturn and lots of unemployment and negative equity performance. In that case you don't want to have to sell depressed equities to fund living expenses unless you have to.

Having a couple of years in an E fund is reasonable to me especially if you are able to adequately fund your retirement fund accounts.

I think most fixed income allocations should include FDIC type products, as well as short term and intermediate bond funds.

I'm almost 75 and our normal income about equals our normal expenses. If I die first my wife will lose half my pension and her SS since mine is higher and she will have to file single instead of joint. I estimated that she will need about $50k per year more. I make sure we have enough "safe" assets to fund her estimated extra needs to her age 90. The "safe" assets are in taxable and tax advantaged accounts. Also, my RMDs should cover the extra expense needs so the "safe" assets are just an extra safety net. "safe" assets I define as FDIC products, money market funds and high quality short term bond funds. Overall allocation is about 45/55 and "safe" assets are about half of our fixed income ...

If you are going to mobile deposit I would only do it if your bank is open at that time. I tried to do a mobile deposit a few months ago and it hung up. I wasn't sure if it would be clear that it made it or not. It turned out it didn't take. I now only try it at my local bank (vs online bank) and only if they are open.

The need to rebalance for a retiree that has "enough" "safe assets" is less. The goal likely transitions from growth to asset preservation the later you are in age/retirement. I'm in my mid 70's with our income close to our normal expenses. We should have enough savings and investments to fund life in most circumstances. I'm not rebalancing and have changed our taxable equity distributions from reinvest to cash. I calculated my wife's income needs should I die first since she would lose 1/2 my pension, her SS since mine is higher and have to file single instead of joint. I make sure we have at least enough "safe" assets (savings, money markets and high quality short term bond funds) to fund her to age 90. That'...

no SS and Pension are retirement income. That allows you to take more investment risk -- if you need or want to. It also allows you to take less risk if you don't need to.

lump sum. much easier then multiple times and make sure that the required amount in total is taken out for the year and no more than that.
Also, if you forget, or become sick and can't finish the job it creates problems.

Most recommend taking it out later in the year to maximize potential portfolio gains - but I wouldn't wait too late - again if you get sick etc. you don't want to miss the deadline.

Consider taking taxable distributions in cash vs reinvest - resume reinvesting them when E fund is re established.

I did a few things early in retirement: 1. Sent taxable dividends and cap gains to money market rather than reinvest. 2. Fixed income allocation in taxable included short term muni fund and Savings account/money market. 3. Established an HELOC (at no cost) to provide a short term option for large unexpected expense as an option.* 4. Tried to keep allocation rebalancing in TIRA vs taxable or Roth accts. 5. Had pension and Social Security sent to an online bank Savings acct. Set up 2 automatic transfers to regular local checking each month approximating normal monthly expenses. Kept additional cash in the Savings account to provide some extra funding options. 6. Established the ability to move money from the taxable money market in # 1 to the...

really it comes down to if you are reasonably healthy and can afford to wait without undo hardship - it is better to wait. This is especially so if you are married and are the much higher earner. The beauty is if during the wait your health or need for income changes - you can file and collect.

Your ability to take risk tends to be less as you near retirement and/or have potential job loss.

I'm almost 75 and our income almost equals our normal monthly expenses. That will be less so if I die before my wife. So, she will need more income due to the loss of half my pension, her SS (mine is larger) and filing taxes single instead of joint.

So I made a rough estimate of what she would need extra each year. I put that yearly amount X the number of years for her to reach age 90 in "safe" fixed income e.g. Savings Accounts, Money Markets, CDs, and short term bond funds. That makes our overall fixed income allocation 50% "safe fixed income and 50% intermediate bonds (most as a part of balanced funds).

Every year or so I give that a rough review.

you could change your taxable US equities distributions to cash and use that money to buy more international equities. No additional taxes and after the new year change it back to reinvest.

I'm guessing the allocations referred to as you stock/bond allocation has roots or fits the brokerage business. Your allocation should reflect your risk tolerance and if you have significant cash I feel you should include it since it gives you a better sense of your overall risk.

I favor the "safe" fixed income be a mix of FDIC products, money market/stable value funds and short term bond funds e.g. short term treasury index. For me that represents about 17 years of draw down needs my widow should need if I pass first. This accounts for about 1/2 of my total fixed income allocation of a 45/55 portfolio.

I also favor having much of my intermediate bond exposure be part of balanced funds in my TIRA - Balanced Index and Wellesley income and Balanced Income funds. I do have some allocation to Inflation Protection Fund and Intermediate Treasury Fund.

I favored several things
1. decent amount of cash e.g. Savings, CDs, money market funds
2. changing taxable equity distributions to cash vs reinvest.
3. some fixed income allocation to a short term bond mutual fund --e.g. Ltd Term Tax Exempt Fund
4. A HELOC (at the time no cost to get one or maintain one)

When money was needed I could choose whatever option seemed to make sense. e.g. new roof - maybe use the HELOC if I itemize my tax return. A lot would depend on what would make sense a the time of need.

I'm in a similar position and my allocation is about 45/55. My fixed income allocation is:

1. 25% FDIC products - Savings, CDs, Money Markets
2. 25% Short Term Bond Funds - Ltd Term Tax Exempt, S.T. Treasury Index, S.T. Bond Index

The above is my "safe" assets. I make sure they are enough yearly draw down to last my wife if she is a widow to age 90 - about 17 years. That will tend to offset the loss of 1/2 my pension, her SS since mine is higher and tax filling single vs joint.

3. 50% Intermediate bond Funds - mostly the fixed income associated with the Balanced Index and Wellesley Income Funds in my TIRA.

I like to have a variety of potential sources for emergency use. Savings account, CDs, Ltd Term Tax Exempt fund, Short Term Treasury Index fund, Federal Money Market Fund, Home Equity Line of Credit, etc. When an unusual expense issue occurs I select one of them to use. e.g. need a new roof might use the HELOC then when a low rate CD matures pay off the HELOC. Or I might take my RMD early and use that to fund the emergency or pay off the HELOC if that makes more sense at the time.

There really is no set it and forget it. You make a reasonable estimate and adjust as needed.

I'm 74 an our normal expenses are almost covered by pensions and SS. I have organized our fixed income in three categories: 1. FDIC products, money markets - 25% 2. Short term bond funds - 25% 3. Intermediate bond funds- 50% (much as part of two balanced funds) The first two categories approximately equal my wife's drawdown needs to age 90 should I pass first and she loses her SS cause mine is higher, half my pension and files single instead of joint.( I guess that is kind of my bucket 1) Overall our allocation is 45/55 This evolved from Wm Bernstein's idea of having 20 years worth of "safe" fixed income drawdown and invest the rest anyway you want. I hope my widow would draw from the "safe" fixed income when the market ...

I like to diversify my fixed income assets: Overall my allocation of a reasonably large portfolio is about 45/55.

1. FDIC products/money market funds
2. Short term bond funds
3. Intermediate bond funds

I try to have enough in 1. and 2. above to fund any income shortfall to age 90 (I'm 74). These assets are more like insurance than an ATM. My withdrawals currently come from a large TIRA that is conservatively invested e.g. about 25/75. Should I die first my wife has a decent amount of "safe" assets to pretty much assure her income needs.

I'm 74 but a few years ago I targeted having sufficient "safe" assets to age 90. These assets supplement Pensions and SS to equal or slightly exceed normal expenses.

When/if I get to 85 or so I'll add a year or 2 to that approach each year if I still have my mental alertness -- if not then my heirs will have to figure out the best approach.

Simplicity has its benefits to be sure-- especially in retirement and if you are very focused on rebalancing each type of fixed income asset. The Total Bond Fund has been very good except for very recently and should rebound. The major benefit of rebalancing is the equity to fixed income allocation. A bit more or less in most short term bond funds or FDIC fixed income choices usually doesn't amount to much change in risk exposure. And to me my fixed income is a large part to tame overall portfolio risk. I'm sure those in a high tax bracket might want to consider a muni fund in their taxable account. Those concerned about inflation might consider individual TIPS or a TIPS fund. Those who have access to a special fixed interest product (the g...

Retired age 74 with pension and SS income almost meeting normal expenses - no debt. My allocation is about 45/55. My wife will lose 1/2 my pension, her SS (mine is higher) and file single instead of joint if I pass first. So, I estimated the annual extra asset/income needs she would have and allocated assets to make her whole to age 90.

Our current fixed income allocation is:

1. 25% in FDIC products, money markets,
2. 25% in short term bond funds
3. 50% in intermediate bond funds -Intermediate Tax Exempt Fund and in my TIRA the Inflation Protection Fund and the fixed income from the Balanced Income Fund and Wellesley Income Fund.

1. and 2. above more than cover potential funding gap till age 90.

Pensions, Annuities and Social Security provide income for life (assuming no default). Extra money in 401k may or may not. I like maximizing lifetime income. I'd continue on your current plan of having a pension and contributing to your 401k. This assumes your company is reasonably solvent.

Buffet's widow would probably have more in bonds than most of us have total assets -- by far. If you want to follow his 90/10 allocation do it because it makes sense for your situation not his.

generally yes. I believe fixed income generally should be somewhat diversified e.g. some FDIC products, Money Market Funds, Inflation protected bonds/funds, short term bond funds. It adds some complexity but I don't overly fuss about having a bit more allocated to a Money Market fund than a Savings account or even short term bond fund. I focus on the overall equity to fixed income allocation. I break the fixed income assets as "no loss of principal, short term bonds/funds, intermediate bonds/funds. My wife is 73 and I try to make sure the "no loss" and short term bonds/funds in total could equal her projected drawdown needs to age 90 in case I pass first. (she would lose 1/2 my pension, her SS and file taxes single instead of...

Social Security income reduces your need for your portfolio to generate income. That is a good thing especially since it is adjusted for inflation. At 71 I don't think your need is more equity growth/risk. Retirees, and I am one that is 74 often underestimate what their loss of earning power means. It is easier to accept some equity drops when you are earning a nice income, contributing to your 401k and getting a company match. But that doesn't happen in retirement and the drops in portfolio and inflation feel and are worse in retirement.

60/40 allocation is reasonably aggressive in retirement - I'd think twice about taking on more risk.

Keep in mind that the brokered CD interest is paid out rather than when you buy it at a bank directly where it is added to the original investment and earns the same CD interest rate. At Vanguard the brokered CD interest is directed to the money market settlement account.

I get those calls too. My approach is to not answer calls when I don't know the caller/number. Most don't leave a message but if they do I listen and then erase. Almost never is it a "real" call of interest. If it sounds like it might be legit e.g. my insurance agent I look up his/her number and call that number back never the number on the message.

I've always had a variety of fixed income and other sources. e.g. a HELOC, EE bonds, Ltd Term tax exempt fund, Savings account, CDs, Money Market account. When a need arose I looked at the best option. Also, factored in what was to happen in the immediate future e.g. tax refund coming soon? near bonus time of year?, CD maturing soon?

Home Improvement I might choose the HELOC since any interest would be tax deductible. Sometimes used HELOC or Credit card and then tap other sources to pay off before any or minimal charge.

I have a rather large portfolio and like to use a variety of fixed income products. Large allocation to VG Balanced Fund and Wellesley Income Fund (in my IRA), also have VG Inflation Protection Fund, VG Intermediate and Ltd Duration Tax Free Funds, CDs, Money Market Fund and Savings accounts and 2 Short Term Index Funds. Wow, does that seem too complex? Does it really matter if you have a bit more in a CD than a bond fund?? I end up with about 25% no loss of principal e.g. FDIC products and Money Markets and Savings, 25% short term bond funds and 50% intermediate bonds. I focus on making sure I have enough No loss of principal and short term bond funds to support my wife's withdrawal needs to at least age 90 should I pass first. She will lo...

In the past I've put a modest amount lump summed and automated a monthly investment to use up the balance after 12 months. Also, if the market was down a decent amount I'd put an extra month's dollars invested. Gets you off the sidelines, teaches you to buy when the market is down and gets you fully invested usually in less than a year.

Seems as if Treasury is having service issues so that would give me some concern.

Just had a new grandson in January. Can't believe the the attention that a baby needs and wants especially in the first few months. Having my son in law helping (he is a soccer coach that works more afternoons/wkends) has been such a benefit. Taking a late night feeding, shopping for baby formula, giving my daughter some rest, etc.

Try it for a few weeks to see how your wife and baby fare and how much you are needed and maybe want to stay.

I think it's fine to diversify your fixed income holdings. I wouldn't get one large CD in case you need some cash. I'd have a few of different sizes e.g. for 60k I'd have a 10k,20k and 30k instead of one 60k CD

I favor some diversification in my fixed income assets.

1. No loss of principal - FDIC products/ money markets -about 25%
2. Short term bond funds - about 25%
3. Intermediate bond funds - Mostly in Balanced Index and Wellesley Income - about 50%.

I guess you should think of it like equity in a house. It will be consumable/investable at the time you actually receive it.

Our income almost equals our normal expenses (we will see how inflation surge affects that ). I've decided to take my RMD in early January. I have large Federal and State withholding to avoid estimated taxes and use the net to help fund some "early inheritance", charity and adjust my "safe" asset reserves to fund normal expenses for my wife to age 90 should I pass first. She will lose her SS, 1/2 my pension and be filing single instead of joint.

If the RMD is needed to fund normal expenses most would suggest taking it later for a better chance of growth. Just remember the penalty if you or heirs forget to take it. Automating RMD withdrawals makes sense and that is what I did.

Our current retirement income from pension and SS almost equals our normal expenses. Our fixed income is about 25% FDIC products/money markets, 25% short term bond funds and 50% intermediate bond funds (mostly in balanced funds) but also a TIPS fund. I try to have enough in the first 2 categories to fund my wife's normal expenses to age 90 should I pass first. She is 72 and will lose 1/2 my pension, her SS since mine is higher and will be filing single instead of joint. I don't use the safer fixed income as an ATM but more as insurance. My main withdrawal is from my RMD which is about 23% equities. (overall I'm about 50/50). This withdrawal funds unusual expenses, growth in expenses and gifts of "early inheritance" and charity. Ha...

I like a bit of diversity in my fixed income holdings. Some FDIC products, some money markets, some short term and intermediate bond funds and some inflation protection funds. I would definitely have some in a 3% Stable Value Fund paying 3%.

I favor paper statements in most cases. Like to make sure if I'm in the hospital or passed on wife or heirs will have timely information. Some exceptions

I think a local brick bank makes sense. I have one and 2 online banks. I've used the brick bank to cash EE bonds and cash was instantly put in our checking account. Used it for cashier's check and again for signature guarantee. Recently I tried to make a mobile check deposit to an online bank and it hung up. I couldn't determine if it went through. It didn't so I use the brick bank - any problems I can walk there and see some one. We just keep the minimum balance and has my wife's small SS money sent there to avoid charges. Periodically transfer money from it to one of the on line banks. Can also push money from Vanguard to the brick bank which would be necessary if I need a large cashier's check. A few years back had a fraud committed on m...

If OP is unemployed in the coming recession for 1 year, OP would lose everything. Taking all these risks in order to earn 2.75% does not make any sense.

Fair point. So, pay off mortgage more gradually as you build a decent emergency fund. Once your E fund is established pay down mortgage more aggressively.