Bonds at Age 50?

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Alf 101
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Bonds at Age 50?

Post by Alf 101 » Mon Oct 23, 2017 1:01 pm

So a number of threads are out there, circling around this basic question. It's easier to plan to contribute toward retirement, but does get trickier actually planning for it. How you allocate between stocks and bonds -- as we know -- is a balance between risk tolerance, optimism, what you think you'll need in retirement, and how close you think you are.

In full disclosure, I'm not 50. I am closer to 50 than 20 though, and looking at that as one of the big milestones for my stock to bond ratio. Looking at the VG Target Retirement funds -- 2035 (about 20 years to go) has a roughly 80/20 split, and 2030 (roughly 15 years before retirement) is 72/28.

There, of course, is more than one road to Dublin. I'm just curious in what people can share about their allocation at age 50, or planned allocation at that age, assuming a typical retirement age.

To start it off, I've generally moved along at Age minus 20 in bonds, so thinking 70/30.

student
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Re: Bonds at Age 50?

Post by student » Mon Oct 23, 2017 1:52 pm

I had about 65% Stock, 28% Fixed Income and 7% Cash when I was 50.

saulg
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Re: Bonds at Age 50?

Post by saulg » Mon Oct 23, 2017 1:55 pm

We are 60/33/7.

Rupert
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Re: Bonds at Age 50?

Post by Rupert » Mon Oct 23, 2017 1:59 pm

For what it's worth, I consider age - 20 to be aggressive, age - 10 to be neutral, and age in bonds to be conservative.

BH13
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Re: Bonds at Age 50?

Post by BH13 » Mon Oct 23, 2017 5:44 pm

At age 50: 63 / 36 (FTBFX, Munis, CDs) / 1 Cash MMA.

Will probably hold at this allocation.

TRC
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Re: Bonds at Age 50?

Post by TRC » Mon Oct 23, 2017 7:01 pm

I'm Age - 5 in bonds. Turning 40 in Dec, so we're about 35% bonds.

In a bull market like this, I think it's natural to second guess this type of AA strategy.

slimshady
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Re: Bonds at Age 50?

Post by slimshady » Mon Oct 23, 2017 7:09 pm

I turn 50 in 2018. My AA is 65/35 with 30% in International equity. I use 5% rebalancing bands and due to the run up in the market, I am close to a rebalance.
I will be eligible for a NYS pension in 6-8 years. It could be argued that my AA could be more or less aggressive due to the pension. I am comfortable with where I am.

Rich

Admiral
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Re: Bonds at Age 50?

Post by Admiral » Mon Oct 23, 2017 7:10 pm

It depends on when one plans to stop working. The AA of a 50 year old who plans to work to 70 would (likely) not be the same as one who plans to only work until 59. Unless one has a ton of money (or very low expenses), you'll need more equities to support a longer retirement.

We are 70/30 (really 75/25 at the moment) at age 46/48. Plan to stop working full time around 58/60. Don't ever expect to have much more than 40% bonds.

bubbadog
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Re: Bonds at Age 50?

Post by bubbadog » Mon Oct 23, 2017 7:39 pm

Age 51 and I am at 65/35.

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oldzey
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Re: Bonds at Age 50?

Post by oldzey » Mon Oct 23, 2017 7:44 pm

Age 50 (next month) and I'm 80/20 (per Charles Ellis' recommendation).
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radiowave
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Re: Bonds at Age 50?

Post by radiowave » Mon Oct 23, 2017 7:50 pm

Rupert wrote:
Mon Oct 23, 2017 1:59 pm
For what it's worth, I consider age - 20 to be aggressive, age - 10 to be neutral, and age in bonds to be conservative.
+1, we're (DH) age-10 with glidepath to 50/50 in early retirement.
Bogleheads Wiki: https://www.bogleheads.org/wiki/Main_Page

Dandy
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Re: Bonds at Age 50?

Post by Dandy » Mon Oct 23, 2017 9:01 pm

I think anything between 50 and 60% equities would be reasonable for most people. I think age in bonds is a decent starting point Adjusting that for a bit based on risk tolerance and how close you feel you are to your "number".

Interesting that early replies tend to be more aggressive than age in bonds. Could that be partially due to the nice long bull market we are in?

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stemikger
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Re: Bonds at Age 50?

Post by stemikger » Mon Oct 23, 2017 9:21 pm

Age 53. Holding steady at 60/40 and will probably stay there well into retirement which I'm hoping is another 10 years.
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Outafter20
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Re: Bonds at Age 50?

Post by Outafter20 » Mon Oct 23, 2017 9:24 pm

DW is 60/40 (all in VBIAX) - 50 Years Old
I am 70/30 - 44 Years Old

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dwickenh
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Re: Bonds at Age 50?

Post by dwickenh » Mon Oct 23, 2017 10:04 pm

At 50 I was 65/35 and have become more conservative 13 years later at 50/50(retired).

Dan
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victw
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Re: Bonds at Age 50?

Post by victw » Mon Oct 23, 2017 10:16 pm

Rupert wrote:
Mon Oct 23, 2017 1:59 pm
For what it's worth, I consider age - 20 to be aggressive, age - 10 to be neutral, and age in bonds to be conservative.
I like this.
Even with some downturn expected we are possibly 4 years from ER. We will be 60/40 or 50/50 when we pull the plug. I would actually prefer to have a higher equity allocation. But we will be funding a long stretch before SS kicks in and health insurance premiums will make up a large part of our spending until age 65. Therefore we are keeping a chunk of money out of the equity market. As we get closer to SS we will likely allow the equity portion to go higher.

I am not a fan of age in bonds - I do not see it rooted in any research. Looking back if I were to do it differently. I would follow a value average approach and allow my stock/bond to float dynamically. Probably not going higher than 80%.

Wow - did I hit the click bait. Is this one of those threads....

Vic

flyingaway
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Re: Bonds at Age 50?

Post by flyingaway » Tue Oct 24, 2017 11:28 am

I guess the 100% stock people do not bother to read this thread.

I am 53. My current fixed income part (bonds, high yield savings, and TIAA traditional) is about 20~30% of my total portfolio. I am moving gradually to more bonds with new contributions and also buying some bonds when the market hits new highs. I do not have an investment statement and am not interested in precise allocations. Feeling good is good enough for me.

theplayer11
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Re: Bonds at Age 50?

Post by theplayer11 » Tue Oct 24, 2017 12:57 pm

age 52...65/35. Was 100% stock until last year when I found this forum

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