Help on retirement funding

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Always passive
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Joined: Fri Apr 14, 2017 4:25 am
Location: Israel

Help on retirement funding

Post by Always passive » Fri Apr 21, 2017 12:00 am

In a previous posting, and my first one since joining this forum, I posed questions on asset allocation for inheritance, and I stated that I felt that about $5m would be available. I got many wise comments, thank you all.
Now, I want to ask a question about retirement funding and hopefully get your opinions. Basically, is there anything that you see that I may be able to improve?
I am 69 and my wife is 66 (wow we are getting old!) and we are retired. Upon retirement, I took a very simplistic view of the retirement portfolio (this DOES NOT include the inheritance money, which it is still in cash after recently selling a business):
1. I built a ladder of individual TIPS (maturing annually) that covers our needs for the next 10 years (along with SS).
My plan is to try to purchase a TIPS every year so that the ladder is always 10 years in length.
The rest of my retirement portfolio looks like this:
2. A corporate bond ETF, VCIT, and an emerging markets bond ETF, VWO,
3. A US stock ETF, VTI, an international stock ETF, VEXUS, and a bit of emerging markets stocks via another ETF, IEMG.
The equity portion consists of about 40%, each US and Developed world ex US, and 20% Emerging Markets. The logic for this allocation is based on Shiller's CAPE.
The equity versus fixed income allocation (and this includes the TIPS ladder) is about 30/70.
I would appreciate it your input.

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Joined: Thu Apr 30, 2015 5:01 pm

Re: Help on retirement funding

Post by radiowave » Fri Apr 21, 2017 7:14 am

One thing to consider is how you will manage this portfolio as you get older. Consider simplification of what you have, a total stock and total international fund in taxable, total bond in tax deferred (the classic 3 fund portfolio). CDs or a CD ladder might also be a consideration, especially if you can automate them, e.g. Ally Bank makes it easy to manage your CDs with their online webpage. I'm assuming the $5M will be invested at some point, have you thought through how this might be passed along to your heirs and charity?
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Joined: Thu Sep 24, 2015 2:28 pm

Re: Help on retirement funding

Post by sco » Fri Apr 21, 2017 9:09 pm

Have you considered just using one or two index funds, in addition to the TIPS? Perhaps a balanced Index fund with a 60/40% mix.

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