What is your age and AA?

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midareff
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Re: What is your age and AA?

Post by midareff »

Retiring in 5 months at age 64 with COLA State Pension and SS starting January 2012 which should cover almost all living expenses. AA will be 46/54 at that point with portfolio slightly over $1M for the finer things, unexpected things and frivolous moments remaining in life. Do not need, want or care to tolerate more risk than that. Bond allocation will increase 1% annually from there to a max of 75%. Heirs are on their own.
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FlyHi
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Re: What is your age and AA?

Post by FlyHi »

How things change. When I started this thread in October 2007, I was 68 and married with an AA 0f 55/45. Now I'm almost 73 and a widower with an AA of 35/65.

Cash - 4%
U.S. Stocks - 26.5%
Foreign Stocks - 8.5%
Bonds - 60%
Other .83%

At least my "other" has been consistant.
“If you want to feel rich, just count the things you have that money can't buy”
no_name
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Re: What is your age and AA?

Post by no_name »

19
AA: 100% stocks

20% total stock market
20% total int'l stock index
20% SCV
20% REIT <------next year
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Toons
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Re: Allocation

Post by Toons »

[quote="SamB"]Age 60 (retired)/wife age 50, still working

Overall stocks/bonds is 70/30. Stocks are total US market (85%) and total international (15%). The allocation is headed toward 65%/35% stocks/bonds in about five years, and will probably remain there.



Very similar,both wife (56) and myself (60),retired,,,,,,70/30 stock bond :D
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texas_archer
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Re: What is your age and AA?

Post by texas_archer »

I'm 33, wife is 31. Portfolio we are aiming for is 60/40.

30 domestic
20 international
10 REIT
40 bonds

We invest ~100k/year, both have pensions also which we do not count as part of our AA.
Last edited by texas_archer on Sat Oct 22, 2011 7:30 pm, edited 1 time in total.
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Rob54keep
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Re: What is your age and AA?

Post by Rob54keep »

Age 57, wife 53

Stocks 40%, Bonds 45%, Cash 15%
10%small-cap,10% International, 10% I-Bonds

No pension except SS but already sufficient funds to meet retirement.
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Kemosabi
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Re: What is your age and AA?

Post by Kemosabi »

48 years old.

Around 65% equities and 35% bonds and a little cash. Nearly all index funds and ETFs. But the percentages you choose and risks you are willing to take should reflect the actual size of your portfolio.
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DaleMaley
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Re: What is your age and AA?

Post by DaleMaley »

Back in 2007, I was 51 with an AA of 90:10.

When I did my annual financial review in December 2007, I decided I no longer needed to take as much risk......and in Jan 2008 switched to 60:40. The 60:40 portfolio made it a lot easier to ride through the Crash of 2008 versus 90:10.

Now I am 55 and AA is 60:40.........where I plan to stay into retirement.
Most investors, both institutional and individual, will find that the best way to own common stocks is through an index fund that charges minimal fees. – Warren Buffett
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DaleMaley
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Re: What is your age and AA?

Post by DaleMaley »

Back in 2007, a poll was done on the Diehards old site. I tabulated the results and compared them to other groups of data about the asset allocation of people.

Below is the survey data from several sources:
I am always on the lookout for actual asset allocation data. Here is a previous posting I did using March 2007 poll data from the old Diehards site:
I am always curious to see the asset allocations used by real people.....and how the risk level varies by age group.

I used 3 data sources to construct the chart below:

1. Poll results from the old Diehards site on asset allocation versus age. These are the many blue diamonds with a green linear regression line.

2. Survey of actual Vanguard investors from the book Wealth of Experience: Real Investors on What Works and What Doesn't by Andrew Clarke. These are the 3 red triangles.

3. Survey of TIAA-CREF members (teachers, university personnel, various other non-profits) in 1996 from the Zvi Bodie paper titled Personal Investing: Advice, Theory, and Evidence from a Survey of TIAA-CREF Participants. These are the 4 orange circles.

I added the actual AA data from the Vanguard 2009 report on their DC plan members (which is 2008 AA data from Figure 45):

Image

The linear regression line which fits the 2007 Diehards data says % stocks = 114 - Age.
If enough people post on this updated thread, I will re-tabulate the results and compare the 2007 data to the 2011 data..........to see if risk levels have changed after the Crash of 2008.
Most investors, both institutional and individual, will find that the best way to own common stocks is through an index fund that charges minimal fees. – Warren Buffett
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empb
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Re: What is your age and AA?

Post by empb »

Age: 27 (him) and 26 (her)

Overall: 82%/10%/8% in stocks/bonds/cash rebalanced (lazily) using 5x25 bands

Equities: 50%/37.5%/12.5% in US small value/EAFE small value/EM small value. Holdings: VBR [tlh with IJS]/DLS [GWX]/DGS
Bonds: 100% in short-term treasuries. Holdings: 75% VFISX and 25% SHY [for ease in rebalancing with above equity ETFs]
Cash: 100% in checking/current accounts

However, I include all cash/"emergency money" etc. in the above. Thus the 8% cash is just a flat $X expressed as a % of the overall portfolio. As the portfolio grows, that cash % will become increasingly small. On the off-chance it's not enough to satisfy some obligation that presents itself, that's what bonds are for!

IMO, ignoring cash when (pretending to) assessing one's overall financial picture (i.e. one's AA) renders it largely a pointless exercise.
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Marmot
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Re: What is your age and AA?

Post by Marmot »

Age Him 54 Her 52

53% US Stock
16% Foreign
29% Bond
2% cash
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lazyfabs
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Re: What is your age and AA?

Post by lazyfabs »

Age: Him/Her 42

Retirement accounts:
~60% Stock/ ~40% Bond

~30% Vanguard Total Stock Market
~15% Vanguard REIT Index
~15% Vanguard Total International
~20% Vanguard Total Bond
~20% Vanguard Inflation-Proteced
Last edited by lazyfabs on Sun Oct 23, 2011 10:58 am, edited 1 time in total.
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SlammingAces
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Re: What is your age and AA?

Post by SlammingAces »

Married
Ages average to 45

Stocks 89% (REITs are 10% of this)
Bonds 4%
Cash 7%

70/30 US/Intl allocation
25/75 Value/Blend tilt
Market weight Large/Small caps
"The safest way to double your money is to fold it over and put it in your pocket." | - Kin Hubbard
Lollytiger
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Re: What is your age and AA?

Post by Lollytiger »

Age: 24
Single
AA: 50/50

25% Total Stock Market
25% Total International Stock Market
25% Intermediate Term Treasuries
25% TIPS + I-Bonds

This excludes an emergency fund, which is in cash.
Risk seeker
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Re: What is your age and AA?

Post by Risk seeker »

28 year old

125% small-cap equity ETFs
negative 25% cash

Equity allocation is as follows:

All small-cap ETFs. 50% US / 50% non-US

25% VSS (SC non-US)
25% VB (SC US)
25% VBR (US SCV)
25% mix of DGS, DLS, RSXJ, LATM, and other non-US small cap ETFs

My objective is to take on as much risk as I can bear, short of a margin call.
Johm221122
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Re: What is your age and AA?

Post by Johm221122 »

41
1% cash 5% reit 17% mid/small 18% international 24% bond 35% large
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Aptenodytes
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Re: What is your age and AA?

Post by Aptenodytes »

Age: 52
Equities: 71%
Fixed: 22%
REIT: 7%

Equities are
Domestic: 53%
International: 47%
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ruralavalon
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Re: What is your age and AA?

Post by ruralavalon »

Both age 66.

50/50 equity/fixed.
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Zagor
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Re: What is your age and AA?

Post by Zagor »

Age: Him 47/Her 45

~60% Stock/ ~40% Bond

~34% Vanguard Total Stock Market
~10% Vanguard REIT Index
~18% Vanguard Total International
~18% Vanguard Total Bond
~19% TSP G-Fund
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empb
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Re: What is your age and AA?

Post by empb »

Risk seeker wrote:28 year old

125% small-cap equity ETFs
negative 25% cash

Equity allocation is as follows:

All small-cap ETFs. 50% US / 50% non-US

25% VSS (SC non-US)
25% VB (SC US)
25% VBR (US SCV)
25% mix of DGS, DLS, RSXJ, LATM, and other non-US small cap ETFs

My objective is to take on as much risk as I can bear, short of a margin call.
I presume a mortgage is what puts you at 125/-25?
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ram
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Re: What is your age and AA?

Post by ram »

Stocks 100 % , Bonds 0
Ave age 45
Domestic 67% Intt 33%
Ram
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mickeyd
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Re: What is your age and AA?

Post by mickeyd »

Me~66
DW~62

AA 60/40 (rebalance annually if there is a 5% shift in AA)

3 pensions and 2 SS~income stream

Favorite local beer~Shiner Black Lager :beer :sharebeer
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William Million
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Re: What is your age and AA?

Post by William Million »

Me 51, wife 48. Equity 43%/Fixed Income 57%. Cola'd pension. Very conservative due to fact that we reached our "number" ans do not want to put it too much at risk.
osullivanliamd
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Re: What is your age and AA?

Post by osullivanliamd »

Age: 22 years old (as of today!)

89% Stock, 11% Bond [Entirely in a Roth IRA Vanguard Target Retirement 2055 Fund]

Breakdown
11% Bonds and Bond Funds
41% Large Domestic Stock and Stock Funds
21% Mid/Small Domestic Stock and Stock Funds
27% International Stock and Stock Funds
Risk seeker
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Re: What is your age and AA?

Post by Risk seeker »

empb wrote:I presume a mortgage is what puts you at 125/-25?

No mortgage, I took out a 401k loan with a 3% after-tax interest rate and invested in VSS.
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tsturbo
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Re: What is your age and AA?

Post by tsturbo »

52 him, 53 her

59% equities
43% TSM index
16% International index

41% bond
30% TBM index
5% Intermediate treasuries
6% Tips

All VG funds
Bungo
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Re: What is your age and AA?

Post by Bungo »

age: 43

60/40 stocks/bonds

15% S&P500 - FXSIX
9% US small value - VBR
6% US REIT - VNQ
15% International developed - FIDKX
15% International emerging - VWO
20% total bond market - BND, PTTRX
10% high yield - VWEHX
10% TIPS - VIPSX
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fizxman
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Re: What is your age and AA?

Post by fizxman »

31 years old

Going for 90/10 AA.

Large US Stocks - 43.4%
Mid/Small US Stocks - 25.9%
International Stocks - 22.2%
Bonds - 8.2%
Cash - 0.3%
EStreet33
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Re: What is your age and AA?

Post by EStreet33 »

26 years old and targeting 85/15.

This is my current breakdown:
Large US Stocks - 59%
Small/Mid US Stocks - 15%
Intl Stocks - 9%
Bonds - 17%
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Sunny Sarkar
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Re: What is your age and AA?

Post by Sunny Sarkar »

Ages: 40, 35, and 8

AA: Goal
70/30: Retirement
75/25: Vanguard 529 Age-based "Agressive Option"
0/100: Emergency fund
"Buy-and-hold, long-term, all-market-index strategies, implemented at rock-bottom cost, are the surest of all routes to the accumulation of wealth" - John C. Bogle
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DaleMaley
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Re: What is your age and AA?

Post by DaleMaley »

It looks like people are done posting on this topic.

I tallied up the results, and unfortunately there are only 44 responses.........versus the 101 responses on the 2007 Diehards poll.

Here are the summary statistics for the 2007 Diehards poll and the 2011 Bogleheads poll:

Image

The two polls are shown in graphical form below:

Image

Although both sample sizes are too small to be statistically significant, it appears the younger folks have reduced risk.......while the 60+ crowd has kept the risk level about the same.

For the 2007 poll, the linear regression says Diehards have a stock allocation equal to 112 - age.

For the 2011 Bogleheads poll, the slope is not close to 1.0 (0.78) so you can not state an age based rule like the 2007 poll. I used the 2 regression equations to show how typical risk levels have changed from 2007 to 2011:

Image

I will update the results if more people post their AA.
Last edited by DaleMaley on Tue Oct 25, 2011 5:20 am, edited 1 time in total.
Most investors, both institutional and individual, will find that the best way to own common stocks is through an index fund that charges minimal fees. – Warren Buffett
pinnacleplace
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Re: What is your age and AA?

Post by pinnacleplace »

ages 44 and 45

65% stock- 35% Bond

25% tsm
15% small cap
20% international
5%Emerging markets
25% TBM
5% TIPS
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tsturbo
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Re: What is your age and AA?

Post by tsturbo »

pinnacleplace wrote:ages 44 and 45

65% stock- 35% Bond

25% tsm
15% small cap
20% international
5%Emerging markets
25% TBM
5% TIPS
Your allocation above indicates 65% stock; 30% bond. The remaining 5% cash?
pinnacleplace
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Re: What is your age and AA?

Post by pinnacleplace »

tsturbo wrote:
pinnacleplace wrote:ages 44 and 45

65% stock- 35% Bond

25% tsm
15% small cap
20% international
5%Emerging markets
25% TBM
5% TIPS
Your allocation above indicates 66% stock; 30% bond. The remaining 5% cash?
correction: 66%/34%
30% tsm
15% small cap
20% total international
1% emerging markets
28% Total Bond
6% TIPS

Can anyone explain the Morningstar xray and what info you receive from it? Is it necessary to purchase the subscription?? It has me confused because if I am doing it right it says my Bond allocation is 5%?? Cant be correct?
thanks! Christine
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Morgthorak
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Re: What is your age and AA?

Post by Morgthorak »

Age: 42

My portfolio is split into two parts:

50% split evenly between Wellington and Wellesley (gives me about 50% dividend paying stocks and 50% intermediate corporate bonds).

50% in Vanguard Total Stock (40%), Total International (20%) and Intermediate Bond (40%).

So my overall stock/bond allocation is about 55% stocks and 45% bonds.

8-)
peppers
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Re: What is your age and AA?

Post by peppers »

Stocks 50 - Bonds 50 My age 57 Wife's age ... uh can't go there, she's watching.
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grabiner
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Still the same allocation as four years ago

Post by grabiner »

Age 43, 90% stock with the risk of 100% stock due to slice-and-dice.

I haven't changed my target allocation but am very close to the target now that I can hold international small-cap in my taxable account. (Four years ago, with International Explorer in my Roth IRA, I was underweighted in value because I won't hold it in my taxable account.)

5% US LG
15% US LV
5% US SG
15% US SV

15% developed large
10% developed small
10% emerging large
5% emerging small

10% real estate (now half US and half foreign since Vanguard has a fund)

10% bonds
Wiki David Grabiner
HongKonger
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Re: What is your age and AA?

Post by HongKonger »

Another non-US based:

Age 39

Stock 60%
Bonds 25%
REITS 15%

Stock:
30% US total & US small cap
30% World ex US value and small cap
30% Developed Asia small cap and Hang Seng Index
10% Emerging Asia

Bonds split evenly between:
Hong Kong treasuries
International ex US TIPS
Developed Asia ex Japan

REITS
75% shopping malls in public housing estates and car parks
25% Grade A office & retail in Hong Kong

I also have individual stocks to the value of around 8% of the above portfolio plus a nasty loaded fund split 50/50 between equities and bonds worth about 5% of the above portfolio that I no longer contribute to and which will be eaten away to nothing by fees before it matures in 2027 :cry:
greetje
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Re: What is your age and AA?

Post by greetje »

71 and 75 retired No pension live off investments and SS

Equity 28% (80% in L C index, 20% T. int.)
Fixed income 72% I Bonds, S T Bonds, Cds, Reward checking

We have 5 year ladder of Cds that we plan on using for living expenses and when they mature we put that year's expected dollar amount needed
into a Reward Checking paying 2.55% and the rest goes back into another 5 year CD. Our yearly RMD go into our Rew. Checking also.
The equity (30%) we let ride, as well as some bond funds and a 7 year and 10 year CD. Also have some I Bonds we can tap if needed.

So far so good. Retired 8 years, and we have 12% more in our assets than when we retired.
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Peter Foley
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Re: What is your age and AA?

Post by Peter Foley »

Me 61, DW 56
Allocation as of October 1, 2011
Equities 45%
I-Bonds/TIPs 15%
Bonds and Stable Value 37%
Real Estate 3%
Due in part to rebalancing during 2008 and 2009, I blew by my number by a wide margin coming out of the last recession and moved about 10% from equities to bonds in late 2010 and early 2011. I sleep much better and rarely read the financial section anymore.
dontslapthebass
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Re: What is your age and AA?

Post by dontslapthebass »

I'm 31

68.8% Vanguard Total Stock Market
31.2% Vanguard Total Inernational
17.7 Vanguard Total Bond Market
knowledge
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Re: What is your age and AA?

Post by knowledge »

32, wife is 33:

Asset allocation is 95% stocks, 5% bonds. Stocks are 60/40 US/Intl.
jonballs
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Re: What is your age and AA?

Post by jonballs »

Me and DW are 32.

73/27 with a target of age - 5 years in bonds, so we're right on target. Equities are US/Int'l 85/15.
galectin
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Re: What is your age and AA?

Post by galectin »

Age: 61/61

AA: 50% Stocks, 50% Bonds
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Groundhog
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Re: What is your age and AA?

Post by Groundhog »

Average age: 51

AA: 59% stocks / 41% bonds

Stocks: 67% US / 33% Int'l
cosmic
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Re: What is your age and AA?

Post by cosmic »

For those with 80%+ in stocks, did you stay long during the 2007-2009 bear market, or did you sell some stocks during the big drawdown in your portfolio? Are you fine with the possibility of losing 50% of your savings if another 2008 occurs?
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gnosis
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Re: What is your age and AA?

Post by gnosis »

cosmic wrote:For those with 80%+ in stocks, did you stay long during the 2007-2009 bear market, or did you sell some stocks during the big drawdown in your portfolio? Are you fine with the possibility of losing 50% of your savings if another 2008 occurs?
Yup no problem... But only because I was just getting started with investing in 2008. I was actually happy about the big crash. WAS.
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B'Falls_JT
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Re: What is your age and AA?

Post by B'Falls_JT »

Ages: 57/58

Stocks: 45%
US Stocks: 30%
Foreign Stocks: 15%
Fixed Income: 54%
Bonds: 27%
Cash (CDs, EE, MM): 27%
Other: 1%

Planning for retirement in one year.

Thanks for the post! Interesting input.
rallycap
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Re: What is your age and AA?

Post by rallycap »

Age: 37,34

AA: Stocks 70% / Bonds 30%

Stocks: 65% Domestic / 35% International
Bonds: Intermediate Treasuries and TIPS
Steve K
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Re: What is your age and AA?

Post by Steve K »

Age 50, 40 equities, 60 bonds.
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