New Retiree seeks feedback

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Joined: Thu Aug 02, 2018 8:43 am

New Retiree seeks feedback

Post by LearningAlot »

I am a recent retiree, after interviewing 10 financial planners, came to the conclusion I should manage my retirement nest egg myself,
hope to do it better and save the fees. Been learning so much from you all (Thanks Much!). I have developed my game plan and
wanted to share it here and get any feedback folks are willing to provide. Looking for ideas to make it better and other perspectives.

* 58 years old
* Goal is not so much to be the richest person in the graveyard but to ensure I don't run out of money before I get there
* I am "planning" to live to 100, so the money needs to last 42 years
* Initial withdrawal rate 3%, increased annually by inflation
* All my funds are with Vanguard

Current portfolio concept:
* 60% fixed income (which equates to initial withdrawal amount x 20)
-30% in 1&2 year CDs/Treasuries
-70% in Vanguard Short-Term Investment-Grade Fund Admiral (VFSUX), average duration is 2.6 years
* 40% Equities
- Use the Paul Merriman Ultimate Buy and Hold Equity (70% US / 30% Int'l) Portfolio, 10 Vanguard funds
* Rebalance annually

Any suggestions to make this better would be greatly appreciated. I am new to this and want to make sure I don't do something stupid.
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Re: New Retiree seeks feedback

Post by bloom2708 »

3% might be too low. I guess get to SS and re-evaluate. 100 might be optimistic. Spending between say 92 and 100 might be tough if you get there.

Are you sure you want to keep 10 funds in line? You don't have to have 10 funds. Your 68 and 78 year old self may not like you for trying to fiddle with 10 funds.

Replace 10 with 70% Total US Stock index and 30% Total International Stock index. 8 funds less. :wink:

"We are here to provoke thoughtfulness, not agree with you." Unknown Boglehead
Posts: 1993
Joined: Mon Oct 14, 2013 9:40 pm

Re: New Retiree seeks feedback

Post by LeeMKE »

+1 Bloom2708

The equity portion is more complex than I'd want doing retirement. I have better things todo.
The mightiest Oak is just a nut who stayed the course.
Posts: 1954
Joined: Sat Jan 20, 2018 4:02 pm

Re: New Retiree seeks feedback

Post by ExitStageLeft »

Welcome to the forum! Your strategy looks good and you've got a withdrawal rate appropriate to your time horizon.

The recommendations from the others are pointing toward a three-fund portfolio. This simple but potent portfolio makes managing asset allocation quick and easy.
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Joined: Mon May 21, 2007 6:32 am

Re: New Retiree seeks feedback

Post by Mitchell777 »

I would ask myself if I will rebalance annually if my equities should drop 50%. If so seems reasonable.
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