Retiree looking for advice

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temery
Posts: 4
Joined: Thu Oct 24, 2013 5:16 am

Retiree looking for advice

Post by temery » Thu Oct 05, 2017 1:29 am

I retired recently at 57, and had taken my money out of the market entirely about a year ago. My pension currently covers my expenses, and I think I can take a little risk with the money in my 403b ($250k with Vanguard). What mix should I use, any suggestions on funds I should look at, and how many different funds should I own?

My first instinct is to split 50/50 between bonds and funds, and I’ve been considering a total international bond index fund, total international stock index fund, and a vanguard US total market index fund, and a US bond index fund.


Last question: Should I begin to renter the market in equal amounts over a period of time, or jump all in at once?

temery
Posts: 4
Joined: Thu Oct 24, 2013 5:16 am

Re: Retiree looking for advice

Post by temery » Thu Oct 05, 2017 2:12 am

Additional info: I have no debt, and have an emergency fund equal to two years of my pension.

Sconie
Posts: 522
Joined: Sun Feb 07, 2010 10:23 am
Location: Arizona

Re: Retiree looking for advice

Post by Sconie » Thu Oct 05, 2017 5:44 am

50/50 is fine----whatever is comfortable for you. If you retained Vanguard asset management too handle the money for you, they'd put it to "work" all at once.
I know that you think you understand what you thought I said, but I don't think you realize that what I said is necessarily what I meant......

livesoft
Posts: 56365
Joined: Thu Mar 01, 2007 8:00 pm

Re: Retiree looking for advice

Post by livesoft » Thu Oct 05, 2017 5:55 am

What you have described for asset allocation is just a Vanguard Target Retirement fund, so I think you should just invest in a Vanguard Target Retirement fund. The Target Retirement 2020 fund is about 50% equities and 50% bonds.

As for the Invest now or wait? question, I guess I would want to know why you got out of the market entirely to begin with before answering.
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PaulF
Posts: 87
Joined: Wed Aug 06, 2008 10:07 pm
Location: Wisconsin

Re: Retiree looking for advice

Post by PaulF » Thu Oct 05, 2017 8:43 am

Also, it might be helpful to know whether your pension is fixed or will have COLAs.

The Wizard
Posts: 10911
Joined: Tue Mar 23, 2010 1:45 pm
Location: Reading, MA

Re: Retiree looking for advice

Post by The Wizard » Thu Oct 05, 2017 10:29 am

livesoft wrote:
Thu Oct 05, 2017 5:55 am

...As for the Invest now or wait? question, I guess I would want to know why you got out of the market entirely to begin with before answering.
An important point here, yes.
A year ago was getting close to the election, so was there fear of the unknown related to that?

Either way, it's important to avoid radical moves and learn to roll with the punches, aka rebalancing...
Attempted new signature...

SimplicityNow
Posts: 210
Joined: Fri Aug 05, 2016 10:31 am

Re: Retiree looking for advice

Post by SimplicityNow » Thu Oct 05, 2017 1:04 pm

livesoft wrote:
Thu Oct 05, 2017 5:55 am
What you have described for asset allocation is just a Vanguard Target Retirement fund, so I think you should just invest in a Vanguard Target Retirement fund. The Target Retirement 2020 fund is about 50% equities and 50% bonds.

As for the Invest now or wait? question, I guess I would want to know why you got out of the market entirely to begin with before answering.

Yes the answer to the question Livesoft asked is key to any response. Obviously you werent' comfortable with your asset allocation. I'm guessing you "thought" something was going to happen to the market but it didn't and now you have regrets taking it out.

20/20 hindsight and market timing do not work. What will prevent you from taking it all out of the market the next time?

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