Anybody else Age - 10 in bonds, rest in stocks

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thefoggycity
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Anybody else Age - 10 in bonds, rest in stocks

Postby thefoggycity » Fri Jan 06, 2017 10:38 pm

Just curious if any others hold this AA.

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Toons
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Re: Anybody else Age - 10 in bonds, rest in stocks

Postby Toons » Fri Jan 06, 2017 10:41 pm

Age 66
Currently
70/30
Was 90/10 from age 29-58
No risk
No reward
It is has,and continues be an enjoyable ride
:happy
Last edited by Toons on Fri Jan 06, 2017 10:47 pm, edited 1 time in total.
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee

tigerdoc93
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Re: Anybody else Age - 10 in bonds, rest in stocks

Postby tigerdoc93 » Fri Jan 06, 2017 10:45 pm

Yes. Age 42. 66% stocks 32% bonds 2% cash/ibonds.

thefoggycity
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Re: Anybody else Age - 10 in bonds, rest in stocks

Postby thefoggycity » Fri Jan 06, 2017 10:51 pm

Toons wrote:Age 66
Currently
70/30
Was 90/10 from age 29-58
No risk
No reward
It is has,and continues be an enjoyable ride
:happy


Coincidence that you shifted 20% of assets to bonds in 08-09 or did you get a little spooked?

MoonOrb
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Re: Anybody else Age - 10 in bonds, rest in stocks

Postby MoonOrb » Fri Jan 06, 2017 10:57 pm

Age 41, 70/30 stocks/bonds.

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Toons
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Re: Anybody else Age - 10 in bonds, rest in stocks

Postby Toons » Fri Jan 06, 2017 11:01 pm

thefoggycity wrote:
Toons wrote:Age 66
Currently
70/30
Was 90/10 from age 29-58
No risk
No reward
It is has,and continues be an enjoyable ride
:happy


Coincidence that you shifted 20% of assets to bonds in 08-09 or did you get a little spooked?


Not spooked at all,,,as a matter of fact,,delighted.
Buy when others panic.low prices.
Market has tripled.
The shift in asset allocation was based partly on our pending retirement :happy
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee

thefoggycity
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Re: Anybody else Age - 10 in bonds, rest in stocks

Postby thefoggycity » Fri Jan 06, 2017 11:03 pm

Toons wrote:
thefoggycity wrote:
Toons wrote:Age 66
Currently
70/30
Was 90/10 from age 29-58
No risk
No reward
It is has,and continues be an enjoyable ride
:happy


Coincidence that you shifted 20% of assets to bonds in 08-09 or did you get a little spooked?


Not spooked at all,,,as a matter of fact,,delighted.
Buy when others panic.low prices.
Market has tripled.
The shift in asset allocation was based partly on our pending retirement :happy



:sharebeer

bligh
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Re: Anybody else Age - 10 in bonds, rest in stocks

Postby bligh » Fri Jan 06, 2017 11:05 pm

I am using Age-15.

GoldenFinch
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Re: Anybody else Age - 10 in bonds, rest in stocks

Postby GoldenFinch » Fri Jan 06, 2017 11:27 pm

Age 50 :shock:
77-23 stocks-bonds

Was always all equity until I read all those "Why bonds?" threads here.

Thanks Bogleheads! :sharebeer

mdba73
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Re: Anybody else Age - 10 in bonds, rest in stocks

Postby mdba73 » Fri Jan 06, 2017 11:27 pm

I go by decade minus 10; Currently in the 40s and I am fine with 30% in bonds. With 20% in international.

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stemikger
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Re: Anybody else Age - 10 in bonds, rest in stocks

Postby stemikger » Fri Jan 06, 2017 11:38 pm

Age 52 (Age -15)
65/35 (stocks/bonds)
Two Fund portfolio all U.S.

Plan to stick with this AA until retirement and transfer entire amount to the Vanguard Balanced Index Fund which is 60/40 and possibly stay there for life.

Also have a paid off house
Last edited by stemikger on Sat Jan 07, 2017 12:44 am, edited 3 times in total.
Press on Regardless!

rkhusky
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Re: Anybody else Age - 10 in bonds, rest in stocks

Postby rkhusky » Fri Jan 06, 2017 11:43 pm

Age-15 in 2016. Will transition to Age-13 in 2017. Plan to be Age-10 in 2019.

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llama
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Re: Anybody else Age - 10 in bonds, rest in stocks

Postby llama » Fri Jan 06, 2017 11:56 pm

We're more conservative. Spouse and I have an average age of a tad over 40 and our AA is 60/40.

22twain
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Re: Anybody else Age - 10 in bonds, rest in stocks

Postby 22twain » Sat Jan 07, 2017 12:00 am

Age 63, 53% "bonds", 47% stocks.

(where "bonds" includes TIAA Traditional Account, Total Bond Market ETF, a CD and some cash.)

TSWNY
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Re: Anybody else Age - 10 in bonds, rest in stocks

Postby TSWNY » Sat Jan 07, 2017 12:28 am

We are 37 and 30. 85% stocks 13% bonds, 2% cash. Slowly shifting that to 20% bonds.

BC_Doc
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Re: Anybody else Age - 10 in bonds, rest in stocks

Postby BC_Doc » Sat Jan 07, 2017 4:06 am

85/15 until two months ago.
Turned 50 and realized I'd won the game.
Age in FI now and moving forward.
Thank you to Jack Bogle, William Bernstein, Taylor Larimore. Your writings and collective wisdom helped me reach my number and then adjust my risk accordingly.

johnny
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Re: Anybody else Age - 10 in bonds, rest in stocks

Postby johnny » Sat Jan 07, 2017 4:20 am

Yeah I do it... age 61, allocation is 50/50. My house is paid for and my pension covers most of my monthly expenses, so I figure I don't need to take on a lot of risk in my portfolio.
johnny | | It's true that money talks. It says "Goodbye".

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smartinwate
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Re: Anybody else Age - 10 in bonds, rest in stocks

Postby smartinwate » Sat Jan 07, 2017 5:56 am

I'm at 50/50, which coincidentally happens to be my age -10 (well, -11, really).
TANSTAAFL

zadie
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Re: Anybody else Age - 10 in bonds, rest in stocks

Postby zadie » Sat Jan 07, 2017 6:33 am

age 40

stocks; 68%
bonds; 20%
cash: 12%

TierArtz
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Re: Anybody else Age - 10 in bonds, rest in stocks

Postby TierArtz » Sat Jan 07, 2017 7:03 am

I'm at 90/10 and am 55. My US/other for each is 60/40 and 70/30, respectively (modeling the VG 2045 fund). I wish I knew what the "best" number was for bonds in my situation: retired military officer with some farm trust income (both cover 50% of expenses) and a great current job. Present investment growth should provide about 3X the remaining yearly expenses after 20+% of monthly income invested for 30 years. Having kids aged 11, 9, and 6 from a 29-year marriage adds to the equation and joy. Pondering an increase in bonds and/or early retirement to enjoy the kids/hunt.

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jhfenton
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Re: Anybody else Age - 10 in bonds, rest in stocks

Postby jhfenton » Sat Jan 07, 2017 7:17 am

Age 46, almost 47, 89% equities (50% international), 11% fixed income, shifting 2% per year.

So based on 12% at 47, we're at (Age - 41) * 2 in bonds.

We were 100% equities until 18 months ago. I decided we might be closer to retirement than I thought.

gilgamesh
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Re: Anybody else Age - 10 in bonds, rest in stocks

Postby gilgamesh » Sat Jan 07, 2017 7:45 am

I am 47 and my wife 46. My overall asset allocation is about 23% bonds. My wife about 20% (currently lagging behind the target but It will also approach ~ 23% at the end of 2017)

My asset location is very different and I do not necessarily worry too much about an overall bond allocation. My Roth (very little now and will be negligible in retirement) which I won't touch till 70 is 100% equity. My HSA which I won't touch till I need it for long term care or medical needs at later ages is heavily tilted to stocks.

My simple IRA and Roll over IRA which makes up the chunk of my funds is 30% bonds for both. This 30% for all intense and purposes is my target bond allocation based on my target retirement age of 60.

I currently only have very little in taxable which is 100% stocks. This will grow exponentially starting in 2020 (after all my business loans are paid off and that money invested) and will be withdrawn first in retirement and my IRA which will be Roth converted. As my taxable grows, funds in the IRA will be used to purchase TIPS for my retirement income floor with the TIPS purchase starting in 2023 for a 2029 retirement. As I near retirement, more of my stock allocation will be in taxable and my bond in TIPS within the IRA. Temporarily I will be over 50% in bonds nearing retirement, however as each TIPS mature and I Roth convert, I will be able to get into stocks more. Target asset allocation in retirement is 60:40, but With bulk in TIPS I will be off (my side portfolio will not go over 80% stock exposure).

After SS I may consider SS floor as bond allocation and may go more stock aggressive with my side portfolio. I just thought about this as I was tryping, so I need to study this concept more. While withdrawing SS my TIPS floor won't be much. At age 80, TIPS floor will run out and a huge TIPS will mature for the option of buying laddered nominal SPIA's as a floor till death.

So, until about 6 years from retirement my bond allocation will fluctuate from about 23% to say 18% and then take a heavy turn and go over 50% at retirement (with all the TIPS purchase) and then gradually approach 40% as TIPS mature. This 40% at one point may include SS (yet to study this). As it goes from 23-18%, if the market tanks or even after and doesn't recover in time for retirement, I will work longer which is not a problem - I enjoy my work.

P.S: the turn from 18-23% bonds to >50% in retirement will actually start 8-9 years prior retirement. I will be moving my TIPS purchase funds 2-3 years prior into short term bond holdings. So, as my first TIPS will be purchased in 2023 (6 years prior to retirement) the equivalent amount will be transferred 2-3 years prior to that into a short term bond fund. This creates the bond tent around retirement. I have target nest egg along each of the final years and my allocation and time to retire will heavily depended on market performance and how well it matches my targets as I near retirement. On retirement I will be set irrelevant of market performance from that day forth. It'll be like docking a boat, I'm hoping for calm waves close to the dock but I'm prepared for a typhoon. However, once it's docked, Im towing it home :D
Last edited by gilgamesh on Sat Jan 07, 2017 9:31 am, edited 13 times in total.

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Rob54keep
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Re: Anybody else Age - 10 in bonds, rest in stocks

Postby Rob54keep » Sat Jan 07, 2017 7:53 am

I'm close to that but it isn't my goal per Se:
Age 63, Retired,,,40 stocks /60 bonds(and a paid off house)

FCM
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Re: Anybody else Age - 10 in bonds, rest in stocks

Postby FCM » Sat Jan 07, 2017 7:59 am

My age: 70. Wife's age: 68. I'm retired and our equity allocation is 40%. Fixed income (stable value fund, bond funds, CD, and money market fund) comprise the rest. This is our "sleep well at night" allocation. My modest pension and our social security income pay the monthly expenses. We don't have any debt.

VAslim16
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Re: Anybody else Age - 10 in bonds, rest in stocks

Postby VAslim16 » Sat Jan 07, 2017 8:03 am

Age 37. Stocks 80% bonds 20%. Will probably continue this for the next 10 years or so and then reevaluate.

Lindrobe
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Re: Anybody else Age - 10 in bonds, rest in stocks

Postby Lindrobe » Sat Jan 07, 2017 8:06 am

I am at roughly age minus 15 for both my husband and I. I am 34, husband is 36 and we both hold 80/20 portfolios.

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midareff
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Re: Anybody else Age - 10 in bonds, rest in stocks

Postby midareff » Sat Jan 07, 2017 8:09 am

Age 69... about 42/55/3 equities, bonds, bank cash. Pension and SS pay all the bills so the portfolio income is for luxury travel and frills.

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stevewolfe
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Re: Anybody else Age - 10 in bonds, rest in stocks

Postby stevewolfe » Sat Jan 07, 2017 8:21 am

Age 44, 40/60 stocks / fixed income (you know, I-Bonds, CD's, bonds). It's about need, willingness and ability to take risk. :beer

JW-Retired
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Re: Anybody else Age - 10 in bonds, rest in stocks

Postby JW-Retired » Sat Jan 07, 2017 8:32 am

Age 73, married, retired.
AA = 65/35 right now (age - 38 in bonds). :shock:

Our target AA has been 60/40 for many years but no plans to re-balance for now. We don't have any need to avoid risk so the bonds we have now are plenty.
JW
Retired at Last

dwickenh
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Re: Anybody else Age - 10 in bonds, rest in stocks

Postby dwickenh » Sat Jan 07, 2017 8:37 am

Age 62, went from 65/35 2 years ago to 50/50 now. This will be my constant FI allocation unless something drastic changes(not the market) my mind.
The market is the most efficient mechanism anywhere in the world for transferring wealth from impatient people to patient people.” | — Warren Buffett

tigermilk
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Re: Anybody else Age - 10 in bonds, rest in stocks

Postby tigermilk » Sat Jan 07, 2017 8:53 am

47 and was 100/0 until mid-December. I am now about 5% bonds as a small hedge against this bull market running out of steam.

blevine
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Re: Anybody else Age - 10 in bonds, rest in stocks

Postby blevine » Sat Jan 07, 2017 9:26 am

I think this too simple a rule, and life circumstances are important. Total savings matter. If one has got some golden number, more than enough to retire, what is the purpose of incremental savings ? Future generations ? Maybe equities are more appropriate. Additional excessive spend, maybe bonds.


I did like the "decade minus" idea above, as a way to avoid annual retinkering, though gradual changes can be more easily implemented with less tax implications, by adjusting contribution and withdrawal of asset classes rather than large trades with possible taxable gains.

There is no exact correct allocation, pick something and rebalance periodically. What is inportant here is to avoid panic selling in bad times....Sticking to some range of prudent AA is more important than the precise AA. See compare of 60/40 vs 40/60 (two Vanguard balanced funds) :

Image
Last edited by blevine on Sun Jan 08, 2017 1:23 am, edited 2 times in total.

sambb
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Re: Anybody else Age - 10 in bonds, rest in stocks

Postby sambb » Sat Jan 07, 2017 11:58 am

i like age in bonds, or 60/40 for life. I will probably just stay at 60S/40B for a very long time, well into retirement. It works for me.

Crow Hunter
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Re: Anybody else Age - 10 in bonds, rest in stocks

Postby Crow Hunter » Sat Jan 07, 2017 12:56 pm

I follow this rule.

Every year on my birthday I bump my asset allocation in my Excel spreadsheet for bonds by one percent which drives all the rest of the formulas. I add throughout the year based on whatever is below target. If something gets out of whack by more than 5%, I rebalance.

It isn't optimal, but I know I can do it.

I originally planned that I would prefer to do it by decade as others have mentioned, but I know myself well enough that I realize I would have a problem with going from 70/30 to 60/40 in one "swell foop" like that. Similar to people posting in early December about not wanting to dump so much money into bonds when they "knew" they were going to be raising interest rates. A 1% increase each year is mentally easier for me than a 10% increase every 10 years.

I guess I am the frog in the water. :wink:

buldogge
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Re: Anybody else Age - 10 in bonds, rest in stocks

Postby buldogge » Sat Jan 07, 2017 12:58 pm

48, currently sitting at 73/27 (AA 70/30). I'm new to the Boglehead world in 2016.

I'm running from behind, playing catch-up after a decade of non-activity/funding and have been struggling with my AA.

I don't know whether I'm making the "right" choice, but I have been trying to increase my bond allocation to 30% over the last couple of months, using Solo401k deferral, and also a little intermediate-muni in taxable.

Anyways, age-20ish will be my goal for the next decade, I think.

-Mark

TravelforFun
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Re: Anybody else Age - 10 in bonds, rest in stocks

Postby TravelforFun » Sat Jan 07, 2017 1:05 pm

64, 65/35 and will maintain this AA for as long as I can. My safe withdrawal rate will be 3% and this AA would allow me to weather at least 11 consecutive years of down market.

S&L1940
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Re: Anybody else Age - 10 in bonds, rest in stocks

Postby S&L1940 » Sat Jan 07, 2017 1:25 pm

in our 70s, but thinking younger -- age minus 25, 50/50 -- sleeping okay
may get more conservative in another couple of years
Don't it always seem to go * That you don't know what you've got * Till it's gone

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hornet96
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Re: Anybody else Age - 10 in bonds, rest in stocks

Postby hornet96 » Sat Jan 07, 2017 1:39 pm

Yes. Will probably follow this allocation until age 50, and then leave it at 60/40.

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scubadiver
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Re: Anybody else Age - 10 in bonds, rest in stocks

Postby scubadiver » Sat Jan 07, 2017 4:04 pm

Avg age of DW and Boglehead Husband: ~40
Stock % / Bond %: 80 / 20. Plus federal pension, but will likely leave federal service long before retirement eligibility, so this will be a modest (albeit reliable) component of retirement $$.

Our stock allocation is 75% domestic, 25% international

Just rebalanced our accounts today.
Last edited by scubadiver on Sat Jan 07, 2017 5:12 pm, edited 1 time in total.

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burt
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Re: Anybody else Age - 10 in bonds, rest in stocks

Postby burt » Sat Jan 07, 2017 5:04 pm

Age +10 in bonds.
Recently retired and a bad "Sequence of Returns" freaks me out.

(The compound interest/inflation math works in reverse when withdrawing from assets).

burt

deikel
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Re: Anybody else Age - 10 in bonds, rest in stocks

Postby deikel » Sat Jan 07, 2017 7:22 pm

I find both 'age in bonds' or 'age -10 in bonds' equally non-sensical and not backed by anything

If you believe in Trinity study than you can argue for either 20 % bonds enhancing your success rate vs 100 % stock or you can argue for 70 % bonds since you don't need the risk to draw it down to zero upon time of death in 30 yrs

In these bond low yielding times, I find it more logical to argue for enough cash in bonds to get you through another recession (say 10 yrs long at worst) - if that than happens to be 50% bonds, so be it....it would also mean that 10 yrs prior to anticipated death, you will be out of the stock market....

...we should much more consider cash flow models than allocation models IMO...
Everything you read in this post is my personal opinion. If you disagree with this disclaimer, please un-read the text immidiatly and destroy any copy or remembrance of it.

simple man
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Re: Anybody else Age - 10 in bonds, rest in stocks

Postby simple man » Sat Jan 07, 2017 8:15 pm

Started with Buffet's full "age = bonds" and have kept at it. Now at 50-50, and based on what i have read on 50-50, i am inclined to stay here for the duration...

z3r0c00l
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Re: Anybody else Age - 10 in bonds, rest in stocks

Postby z3r0c00l » Sat Jan 07, 2017 8:18 pm

Age - 10 in bonds with 5% increments, rounding up. Totally arbitrary but feels about right for comfort and glide path into retirement. Not planning to go past 50/50 at any age.

Nearly 35 yo, 75/25 though for the past 8 years it was a drag on return for sure.
Last edited by z3r0c00l on Sun Jan 08, 2017 7:27 am, edited 1 time in total.

Big Dog
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Re: Anybody else Age - 10 in bonds, rest in stocks

Postby Big Dog » Sat Jan 07, 2017 8:57 pm

only recently started bonds. Up until three years ago, was 99% equities.

Age 63, now 25% bonds.

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NateH
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Re: Anybody else Age - 10 in bonds, rest in stocks

Postby NateH » Sat Jan 07, 2017 11:34 pm

here!

age 42
fixed income 32%

Same simple math calculation for the last 15 years.
steady as she goes.
4X top-twenty S&P 500 prognosticator. I'd start a newsletter, but it would only have one issue per year.

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TinkerPDX
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Re: Anybody else Age - 10 in bonds, rest in stocks

Postby TinkerPDX » Sun Jan 08, 2017 1:31 am

Age-10 In bonds, plan to stay there at least until we hit 60-40, may eventually go to 50-50. Currently 33yo, 77-23 allocation.

Also tilted to small, value, emerging.

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TinkerPDX
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Re: Anybody else Age - 10 in bonds, rest in stocks

Postby TinkerPDX » Sun Jan 08, 2017 1:38 am

Crow Hunter wrote:I follow this rule.

Every year on my birthday I bump my asset allocation in my Excel spreadsheet for bonds by one percent which drives all the rest of the formulas. I add throughout the year based on whatever is below target. If something gets out of whack by more than 5%, I rebalance.

It isn't optimal, but I know I can do it.

I originally planned that I would prefer to do it by decade as others have mentioned, but I know myself well enough that I realize I would have a problem with going from 70/30 to 60/40 in one "swell foop" like that. Similar to people posting in early December about not wanting to dump so much money into bonds when they "knew" they were going to be raising interest rates. A 1% increase each year is mentally easier for me than a 10% increase every 10 years.

I guess I am the frog in the water. :wink:


I have enjoyed my spreadsheet's real-time adjustment by pegging the bond % to a formula with the "=TODAY()" function and the average of our birthdays, so our allocation changes 1/365th of a percent each day. As we're contributing twice a month, this of course doesn't mean constant rebalancing to accommodate the AA change.

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TinkerPDX
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Re: Anybody else Age - 10 in bonds, rest in stocks

Postby TinkerPDX » Sun Jan 08, 2017 1:40 am

deikel wrote:I find both 'age in bonds' or 'age -10 in bonds' equally non-sensical and not backed by anything

If you believe in Trinity study than you can argue for either 20 % bonds enhancing your success rate vs 100 % stock or you can argue for 70 % bonds since you don't need the risk to draw it down to zero upon time of death in 30 yrs

In these bond low yielding times, I find it more logical to argue for enough cash in bonds to get you through another recession (say 10 yrs long at worst) - if that than happens to be 50% bonds, so be it....it would also mean that 10 yrs prior to anticipated death, you will be out of the stock market....

...we should much more consider cash flow models than allocation models IMO...


Two things at least are somewhat-sensical about it: 1) having an AA and sticking to it is better than not having an AA or not sticking to it; and 2) less risk as one ages is at least basically desirable for most people.

It isn't perfect, but it's good enough for me.

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whodidntante
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Re: Anybody else Age - 10 in bonds, rest in stocks

Postby whodidntante » Sun Jan 08, 2017 2:04 am

Yes, assuming I am 13.

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llama
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Re: Anybody else Age - 10 in bonds, rest in stocks

Postby llama » Sun Jan 08, 2017 2:40 am

TinkerPDX wrote:I have enjoyed my spreadsheet's real-time adjustment by pegging the bond % to a formula with the "=TODAY()" function and the average of our birthdays, so our allocation changes 1/365th of a percent each day.

We used to do exactly this as well until our average age hit 40. Now we're staying at 60/40 for the foreseeable future.


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