suggest 50/50 portfolio

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Wild Willie
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suggest 50/50 portfolio

Post by Wild Willie »

For the past five years, I have been in what amounts to a 35/65 portfolio (half in VTINX-Target Income and half in VWIAX-Wellsley Income). I chose those two funds for simplicity in case I started drooling and wetting my pants so my DW could just "stay the course" and not worry about what to do. Last year, we made a decision that when the drooling and wetting starts, she will call PAS and turn our portfolio over to VG to manage. While I'm not sure how well they will do compared to my "sage decisions", she will be able to sleep better since she won't have to make any decisions because she (like many DW's) doesn't comprehend investments well.

Fast forward to today, I have averaged just over 5% annually with my VTINX/VWIAX portfolio and am wondering if I ought not to try to reach a bit to get a little better return with a heavier weighting in equities. With a withdrawal schedule that averages about 3.7% and 2%?? inflation rate, we are starting to go backwards slightly. While capital preservation is my main concern, I was wondering if the group might suggest a different mix with a minimum number of funds (only VG of course) that might perk up our returns with only slightly more risk.

I realize I am not providing all the info usually recommended, but I'm just keeping it simple so no one gets a headache. We are both retired with no outside income other than SS and our RMD's. Any suggestions?
chevca
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Re: suggest 50/50 portfolio

Post by chevca »

Stick with what got you there... If you've won the game, stop playing... and so on.

I don't see any reason to change your strategy now. In retirement is not the time to start reaching for return, IMO.
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mhadden1
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Re: suggest 50/50 portfolio

Post by mhadden1 »

Stock markets are down quite a bit lately, and many are posting on this forum with their hair on fire. At 35/65, I am guessing that your hair is blissfully cool and presentable.

Seriously, it appears that if your purchasing power is eroding, it's only a very little bit. Do you really want to take on more risk as a response? Maybe you do, and that's ok, but I would consider it very very carefully.
Oh I can't, can I? That's what they said to Thomas Edison, mighty inventor, Thomas Lindberg, mighty flyer,and Thomas Shefsky, mighty like a rose.
Mike Scott
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Re: suggest 50/50 portfolio

Post by Mike Scott »

If you are looking for a single balanced fund at Vanguard... they do have a 50:50 tax managed balanced fund. They also have the balanced Life Strategy funds including 60/40 and 40/60 splits. Look at the options, but I don't see that you need to do anything different right now.
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stemikger
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Re: suggest 50/50 portfolio

Post by stemikger »

I'm 53 and will turn 54 in June and I'm all in the Vanguard Balanced Index Fund for life. Don't even have to look at it during these trying times because Vanguard does the rebalancing for me.
Choose Simplicity ~ Stay the Course!! ~ Press on Regardless!!!
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tennisplyr
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Re: suggest 50/50 portfolio

Post by tennisplyr »

Like any decision in life, what is your goal of making a change?
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bertilak
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Re: suggest 50/50 portfolio

Post by bertilak »

From a link on another recent post to Bogleheads.org:
  • Harry Markowitz won the Nobel Prize for exploring the mathematical tradeoff between risk and return. A few years ago the Wall Street Journal asked him how, given his work, he structured his own portfolio. He replied:
    • I visualized my grief if the stock market went way up and I wasn’t in it – or if it went way down and I was completely in it. My intention was to minimize my future regret. So I split my contributions 50/50 between bonds and equities.
    -- Morgan Housel, a partner at Collaborative Fund and a former columnist at The Motley Fool and The Wall Street Journal, quoting Markowitz. https://www.collaborativefund.com/blog/ ... 247fbe7c95
I came to the same 50/50 for about the same reason. I also figured odds are the worst performing 50% would still be decent.

Edit here's the other BH.org post: viewtopic.php?p=4274987#p4273869
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2pedals
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Re: suggest 50/50 portfolio

Post by 2pedals »

I am 59 years old and just recently retired in November this year. I am at 45% stocks all index funds. I have a significant pension that will cover most expenses except discretionary spending for travel and toys. When DW and I collect SS we should have more than enough. I am somewhat concerned with the sequence of returns risk at this point in life, so I starting at 45% equity and I plan to "hold equity" and that should gradually increase my equity allocation percentages as I gradually withdraw from my bond allocation. I plan to sell equity if allocation exceeds 55% before age 65 yo. After 65 I plan to sell equity if allocation exceeds 70%. I would say in general I don't think I would sleep well at night with more than 50% in equity in retirement if I did not have more than enough.
RetiredCSProf
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Re: suggest 50/50 portfolio

Post by RetiredCSProf »

Wild Willie wrote: Sat Dec 22, 2018 5:41 pm For the past five years, I have been in what amounts to a 35/65 portfolio (half in VTINX-Target Income and half in VWIAX-Wellsley Income). I chose those two funds for simplicity in case I started drooling and wetting my pants so my DW could just "stay the course" and not worry about what to do. Last year, we made a decision that when the drooling and wetting starts, she will call PAS and turn our portfolio over to VG to manage. While I'm not sure how well they will do compared to my "sage decisions", she will be able to sleep better since she won't have to make any decisions because she (like many DW's) doesn't comprehend investments well.
Please consider re-phrasing your post. Imagine how it would sound to you if I wrote, "... he won't have to make any decisions because he (like many men) doesn't comprehend investments well."

Also, keep in mind that women are not immune to disease. My neighbor lost his wife (in her late 50's) ) to dementia last year. She wasn't drooling but was prone to walking out the door and not finding her way back home. Hopefully, you have an estate plan with a designated power of attorney for both of you.

It sounds like you chose a simple portfolio because it fits your current needs. OTOH, your plan suggests that you are willing to increase your risk significantly five years into retirement, from a conservative or balanced portfolio to a growth 70/30 portfolio. If your expenses will not increase, then unlikely that you will need to take greater risk in the hope of realizing greater returns.
andrew99999
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Re: suggest 50/50 portfolio

Post by andrew99999 »

2pedals wrote: Sat Dec 22, 2018 7:49 pm I am 59 years old and just recently retired in November this year. I am at 45% stocks all index funds. I have a significant pension that will cover most expenses except discretionary spending for travel and toys. When DW and I collect SS we should have more than enough. I am somewhat concerned with the sequence of returns risk at this point in life, so I starting at 45% equity and I plan to "hold equity" and that should gradually increase my equity allocation percentages as I gradually withdraw from my bond allocation. I plan to sell equity if allocation exceeds 55% before age 65 yo. After 65 I plan to sell equity if allocation exceeds 70%. I would say in general I don't think I would sleep well at night with more than 50% in equity in retirement if I did not have more than enough.
If you have all of your needs taken care of and your stocks/bonds are just icing, then since that icing can be cut in a bear market, your SOR risk is now low-to-none. The main problem with SOR risk is that people can't just stop using money for basic needs, so they eat into their wealth more during long bear markets, but if your basic cost of living is taken care of, you actually can stop using money by buying less toys and travel in a bear market, so it looks like you face little-to-no SOR risk. What am I missing?

Not to say that you "need" to take on more risk, but it seems like you are able to without much problem, so going from 40 to 50% equities wouldn't necessarily hurt you, but it sounds like your willingness to take risk is low so you need to address that.
SoAnyway
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Re: suggest 50/50 portfolio

Post by SoAnyway »

mhadden1 wrote: Sat Dec 22, 2018 6:09 pm Stock markets are down quite a bit lately, and many are posting on this forum with their hair on fire. At 35/65, I am guessing that your hair is blissfully cool and presentable. Seriously, it appears that if your purchasing power is eroding, it's only a very little bit. Do you really want to take on more risk as a response? Maybe you do, and that's ok, but I would consider it very very carefully.
+1. Well said, mhadden1.

OP, with your AA the recent market turmoil (as you know, a minor blip compared to the crash of '87/the dot-com bust/the financial crisis) shouldn't concern you in the least - assuming that the details you've understandably decided not to share are in order.

I highly recommend that you read from start to finish Sheepdog's outstanding thread during the 2008-2009 turmoil. It's long, but well worth the read, esp. for someone in retirement whose DW is uninterested in financial matters and who feels deeply responsible for making sure she'll be ok if she should survive him - which as pointed out by another poster upthread is not at all certain, btw. Sheepdog's thread starts with the following paragraph:
"I have been retired for 10 years. I am one who has said over and over again. Stay the course. Look for the long term. Yeah, sure. That's fine until today. Today did it. I am just starting to be scared so that I won't tell my wife what happened today...stocks down...bonds down...I'm down. Our retirement funds are sucking down the drain. I lost today alone a year's worth of normal distributions for expenses. I keep thinking tomorrow will be a turn around. I have said that for 30 days. I am 25% capitulating tomorrow, maybe 50% to money markets....maybe all. This is not me. I will see tomorrow.
SoAnyway, I agree that any AA/portfolio changes should be very carefully considered. I also agree that you might want to consider deleting the parenthetical in your post re. "many DWs". (You can use the pencil icon in the upper-right corner of your post to do so after you've logged in.) I know from the humility shown in your post that you meant NO offense to anyone by it, and that this is in part generational. Indeed, I greatly admire and respect your desire to provide for your DW in the event of your untimely demise.

That said, there are many excellent, insightful, sick-brilliant investment-guidance posts from DWs on this forum whose spouses are completely useless when it comes to investing and household finances. I'd hate to see you miss out on the benefit of their wise guidance because they (not unjustifiably) assumed from the wording of your post that you were uninterested in any input they might offer. Best wishes to you and DW, OP!
Nothing in this post constitutes legal or medical advice. | Consult your attorney or physician to verify if/how anything stated might or might not be applicable to your specific situation.
dbr
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Re: suggest 50/50 portfolio

Post by dbr »

While past data suggests that 35% stocks is on the low end of optimum for inflation adjusted withdrawal at 4% of initial portfolio, I think it would be hard to make a case that much will be changed so far as making your portfolio last by changing to 50/50. Increasing stock allocation for the long run would increase the range of wealth left after significant time. In the short run there would not be much change viewed in prospect.

There is no way to meaningfully increase return and not increase risk.

It is not clear what you mean by capital preservation as a near 4% withdrawal rate from a very conservative portfolio is intended to include some liklihood of exhausting the portfolio over time. If you really want to make sure the inflation adjusted portfolio value does not decrease by the end of some lengths of time 3.7% is too much to withdraw from any portfolio. Still, there will also be possible outcomes where the portfolio will grow substantially, but it is a question of how much certainty you want. Investing is not by and large a certain proposition.

That said, I think 35% stocks really is on the low side for a portfolio intended to support inflation adjusted 4% withdrawals for an extended time. If the time is short, then there is no need to worry much about asset allocation.
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Wild Willie
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Re: suggest 50/50 portfolio

Post by Wild Willie »

dbr wrote: Sun Dec 23, 2018 10:32 am While past data suggests that 35% stocks is on the low end of optimum for inflation adjusted withdrawal at 4% of initial portfolio, I think it would be hard to make a case that much will be changed so far as making your portfolio last by changing to 50/50. Increasing stock allocation for the long run would increase the range of wealth left after significant time. In the short run there would not be much change viewed in prospect.

There is no way to meaningfully increase return and not increase risk.

It is not clear what you mean by capital preservation as a near 4% withdrawal rate from a very conservative portfolio is intended to include some liklihood of exhausting the portfolio over time. If you really want to make sure the inflation adjusted portfolio value does not decrease by the end of some lengths of time 3.7% is too much to withdraw from any portfolio. Still, there will also be possible outcomes where the portfolio will grow substantially, but it is a question of how much certainty you want. Investing is not by and large a certain proposition.

That said, I think 35% stocks really is on the low side for a portfolio intended to support inflation adjusted 4% withdrawals for an extended time. If the time is short, then there is no need to worry much about asset allocation.
Well said DBR. The 3.7% withdrawal rate is very close to our RMD, but I guess I could reduce that, in effect, by not spending/gifting the entire RMD, but that would take away some fun in our life which we would prefer not to do.
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goingup
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Re: suggest 50/50 portfolio

Post by goingup »

I like your simple portfolio. If you want to take a little more risk with the hope of more return you could swap Wellesley for Wellington fund. It's not a bad time to buy that fund--really off the highs.
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2pedals
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Re: suggest 50/50 portfolio

Post by 2pedals »

andrew99999 wrote: Sat Dec 22, 2018 11:58 pm
2pedals wrote: Sat Dec 22, 2018 7:49 pm I am 59 years old and just recently retired in November this year. I am at 45% stocks all index funds. I have a significant pension that will cover most expenses except discretionary spending for travel and toys. When DW and I collect SS we should have more than enough. I am somewhat concerned with the sequence of returns risk at this point in life, so I starting at 45% equity and I plan to "hold equity" and that should gradually increase my equity allocation percentages as I gradually withdraw from my bond allocation. I plan to sell equity if allocation exceeds 55% before age 65 yo. After 65 I plan to sell equity if allocation exceeds 70%. I would say in general I don't think I would sleep well at night with more than 50% in equity in retirement if I did not have more than enough.
If you have all of your needs taken care of and your stocks/bonds are just icing, then since that icing can be cut in a bear market, your SOR risk is now low-to-none. The main problem with SOR risk is that people can't just stop using money for basic needs, so they eat into their wealth more during long bear markets, but if your basic cost of living is taken care of, you actually can stop using money by buying less toys and travel in a bear market, so it looks like you face little-to-no SOR risk. What am I missing?

Not to say that you "need" to take on more risk, but it seems like you are able to without much problem, so going from 40 to 50% equities wouldn't necessarily hurt you, but it sounds like your willingness to take risk is low so you need to address that.
Andrew
My MIL and/or other family members may need support or something extremely unfortunate and unknown could happen, this is my SOR risk (not living expenses). These expenses are unknown and most likely will be sooner than later since I am much younger than my other family members that may need help. These events can happen before I wish to claim for social security. I also will need to withdraw more now and less later. So my willingness to take on more 55% equity is low, until I know more about these risks (after 70).

I don't understand why you think I need to address my willingness to take on more risk, one should be able to sleep well at night, spend and enjoy early retirement.
dbr
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Re: suggest 50/50 portfolio

Post by dbr »

Wild Willie wrote: Sun Dec 23, 2018 10:39 am
dbr wrote: Sun Dec 23, 2018 10:32 am While past data suggests that 35% stocks is on the low end of optimum for inflation adjusted withdrawal at 4% of initial portfolio, I think it would be hard to make a case that much will be changed so far as making your portfolio last by changing to 50/50. Increasing stock allocation for the long run would increase the range of wealth left after significant time. In the short run there would not be much change viewed in prospect.

There is no way to meaningfully increase return and not increase risk.

It is not clear what you mean by capital preservation as a near 4% withdrawal rate from a very conservative portfolio is intended to include some liklihood of exhausting the portfolio over time. If you really want to make sure the inflation adjusted portfolio value does not decrease by the end of some lengths of time 3.7% is too much to withdraw from any portfolio. Still, there will also be possible outcomes where the portfolio will grow substantially, but it is a question of how much certainty you want. Investing is not by and large a certain proposition.

That said, I think 35% stocks really is on the low side for a portfolio intended to support inflation adjusted 4% withdrawals for an extended time. If the time is short, then there is no need to worry much about asset allocation.
Well said DBR. The 3.7% withdrawal rate is very close to our RMD, but I guess I could reduce that, in effect, by not spending/gifting the entire RMD, but that would take away some fun in our life which we would prefer not to do.
It is better not to confuse RMD with withdrawal. RMD is just transfer of assets from tax deferred accounts to taxable accounts with a tax cost imposed at the time. At the same time one might or might not withdraw and spend or gift some amount of money that might or might not be set equal to the RMD. But the two things really are separate. Certainly if you want to spend or give away a certain fraction of your wealth every year that is both normal and perfectly fine, of course. It is just a question of taking a look at the consequences.

Also, a technicality, withdrawal rates are relative to one's total portfolio holdings and the fate of those holdings. RMD is a percentage that applies to subject retirement account (tax deferred) holdings and hence just one piece of the total of either spending or assets. Spending, on the other hand can include spending of income such as SS or annuities that are not related to wealth holdings.
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Re: suggest 50/50 portfolio

Post by ruralavalon »

Wild Willie wrote: Sat Dec 22, 2018 5:41 pm For the past five years, I have been in what amounts to a 35/65 portfolio (half in VTINX-Target Income and half in VWIAX-Wellsley Income). I chose those two funds for simplicity in case I started drooling and wetting my pants so my DW could just "stay the course" and not worry about what to do. Last year, we made a decision that when the drooling and wetting starts, she will call PAS and turn our portfolio over to VG to manage. While I'm not sure how well they will do compared to my "sage decisions", she will be able to sleep better since she won't have to make any decisions because she (like many DW's) doesn't comprehend investments well.

Fast forward to today, I have averaged just over 5% annually with my VTINX/VWIAX portfolio and am wondering if I ought not to try to reach a bit to get a little better return with a heavier weighting in equities. With a withdrawal schedule that averages about 3.7% and 2%?? inflation rate, we are starting to go backwards slightly. While capital preservation is my main concern, I was wondering if the group might suggest a different mix with a minimum number of funds (only VG of course) that might perk up our returns with only slightly more risk [emphasis added].

I realize I am not providing all the info usually recommended, but I'm just keeping it simple so no one gets a headache. We are both retired with no outside income other than SS and our RMD's. Any suggestions?
Age 73, retired since January 2011, we have no pension or annuities, and our spending is covered by Social Security plus Required Minimum Distributions.

The target for our 50/50 portfolio is:
25%, Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) ER 0.04%
10%, Vanguard Small-cap Value Index Fund Admiral Shares (VSIAX) ER 0.07%;
15%, Vanguard Total International Stock Index Fund Admiral Shares (VTIAX) ER 0.12%; and
50%, Vanguard Intermediate-term Bond Index Fund Admiral Shares (VBILX) ER, 0.07%.

The small-cap value and international have not been providing "perk up " to our returns :( .
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started
Topic Author
Wild Willie
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Re: suggest 50/50 portfolio

Post by Wild Willie »

I responded to Retired earlier, but for some reason, the post didn't show up in this thread. Oh well, no problem and no use repeating anyway.

Most of you got it right, I am just trying to "juice up" my returns a bit. Thinking hard of DCA'ing from VTINX to VWENX over the course of 2019 with a goal of then being approximately 50/50 with Wellesley and Wellington as my only funds.
dbr
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Re: suggest 50/50 portfolio

Post by dbr »

Wild Willie wrote: Mon Dec 24, 2018 10:42 am I responded to Retired earlier, but for some reason, the post didn't show up in this thread. Oh well, no problem and no use repeating anyway.

Most of you got it right, I am just trying to "juice up" my returns a bit. Thinking hard of DCA'ing from VTINX to VWENX over the course of 2019 with a goal of then being approximately 50/50 with Wellesley and Wellington as my only funds.
You should set your asset allocation by a careful consideration of your need, ability, and willingness to take risk. That said, changing from 35/65 to 50/50 is entirely plausible in general. A question is how did you arrive at 35/65 in the first place and what has changed in either your situation or your understanding since then?
kerplunk
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Re: suggest 50/50 portfolio

Post by kerplunk »

My (blanket) suggestion for a retired person:

40% Total US Stock Market
10% Total International Stock Market
50% Total US Bond Market

Might not be right for everyone, but if you want 50/50, I’ve found nothing better.
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Wild Willie
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Re: suggest 50/50 portfolio

Post by Wild Willie »

dbr wrote: Mon Dec 24, 2018 11:14 am
Wild Willie wrote: Mon Dec 24, 2018 10:42 am I responded to Retired earlier, but for some reason, the post didn't show up in this thread. Oh well, no problem and no use repeating anyway.

Most of you got it right, I am just trying to "juice up" my returns a bit. Thinking hard of DCA'ing from VTINX to VWENX over the course of 2019 with a goal of then being approximately 50/50 with Wellesley and Wellington as my only funds.
You should set your asset allocation by a careful consideration of your need, ability, and willingness to take risk. That said, changing from 35/65 to 50/50 is entirely plausible in general. A question is how did you arrive at 35/65 in the first place and what has changed in either your situation or your understanding since then?
My change to 35/65 was as a result of the 2008/9 downturn and recovery. In the post that did not post (mentioned above), I relayed info that during the 2008/9 debacle, while I lost 1/3 on paper in a 70/30 portfolio, I did not panic and I waited until we had fully recovered before I changed our AA to what it is right now. Yes, I probably erred on the side of a very conservative approach so now I'm gonna try a slight correction to take a little more risk with, hopefully, a little more return. As info, my wife and I are both in our early 70's and our "hair is not on fire".
dbr
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Re: suggest 50/50 portfolio

Post by dbr »

Wild Willie wrote: Mon Dec 24, 2018 11:54 am
dbr wrote: Mon Dec 24, 2018 11:14 am
Wild Willie wrote: Mon Dec 24, 2018 10:42 am I responded to Retired earlier, but for some reason, the post didn't show up in this thread. Oh well, no problem and no use repeating anyway.

Most of you got it right, I am just trying to "juice up" my returns a bit. Thinking hard of DCA'ing from VTINX to VWENX over the course of 2019 with a goal of then being approximately 50/50 with Wellesley and Wellington as my only funds.
You should set your asset allocation by a careful consideration of your need, ability, and willingness to take risk. That said, changing from 35/65 to 50/50 is entirely plausible in general. A question is how did you arrive at 35/65 in the first place and what has changed in either your situation or your understanding since then?
My change to 35/65 was as a result of the 2008/9 downturn and recovery. In the post that did not post (mentioned above), I relayed info that during the 2008/9 debacle, while I lost 1/3 on paper in a 70/30 portfolio, I did not panic and I waited until we had fully recovered before I changed our AA to what it is right now. Yes, I probably erred on the side of a very conservative approach so now I'm gonna try a slight correction to take a little more risk with, hopefully, a little more return. As info, my wife and I are both in our early 70's and our "hair is not on fire".
I would take a harder look at need, ability, and willingness. An evaluation of those factors should not be generating different answers just because the market has gone up or gone down at some point in time.

On the other hand, 50/50 is kind of the center point that is not far wrong for most anyone.
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Re: suggest 50/50 portfolio

Post by bck63 »

Wild Willie wrote: Sat Dec 22, 2018 5:41 pm For the past five years, I have been in what amounts to a 35/65 portfolio (half in VTINX-Target Income and half in VWIAX-Wellsley Income). I chose those two funds for simplicity in case I started drooling and wetting my pants so my DW could just "stay the course" and not worry about what to do. Last year, we made a decision that when the drooling and wetting starts, she will call PAS and turn our portfolio over to VG to manage.
Has the drooling and wetting started yet?
aristotelian
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Re: suggest 50/50 portfolio

Post by aristotelian »

Is 5% good or bad? What has changed that would affect your risk tolerance and cause you to change your plan?
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Re: suggest 50/50 portfolio

Post by pkcrafter »

Wild Willy, I have looked carefully at minimum withdrawal rate for someone withdrawing ~4%, no pension, only SS. I found that 40% equity does (did) keep up the portfolio value, but 35% was not quite enough. Everyone's situation is a bit different, but without pension, etc, I now suggest 40% minimum for a retiree who is withdrawing 4%.


Paul
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.
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Wild Willie
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Re: suggest 50/50 portfolio

Post by Wild Willie »

bck63 wrote: Mon Oct 21, 2019 7:15 am
Wild Willie wrote: Sat Dec 22, 2018 5:41 pm For the past five years, I have been in what amounts to a 35/65 portfolio (half in VTINX-Target Income and half in VWIAX-Wellsley Income). I chose those two funds for simplicity in case I started drooling and wetting my pants so my DW could just "stay the course" and not worry about what to do. Last year, we made a decision that when the drooling and wetting starts, she will call PAS and turn our portfolio over to VG to manage.
Has the drooling and wetting started yet?
Not yet
bck63
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Re: suggest 50/50 portfolio

Post by bck63 »

Wild Willie wrote: Sun Dec 29, 2019 10:04 am
bck63 wrote: Mon Oct 21, 2019 7:15 am
Wild Willie wrote: Sat Dec 22, 2018 5:41 pm For the past five years, I have been in what amounts to a 35/65 portfolio (half in VTINX-Target Income and half in VWIAX-Wellsley Income). I chose those two funds for simplicity in case I started drooling and wetting my pants so my DW could just "stay the course" and not worry about what to do. Last year, we made a decision that when the drooling and wetting starts, she will call PAS and turn our portfolio over to VG to manage.
Has the drooling and wetting started yet?
Not yet
:thumbsup :thumbsup
sixtyforty
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Re: suggest 50/50 portfolio

Post by sixtyforty »

Vanguard has a pretty good questionnaire on suggesting asset allocation based on a number of factors.

https://personal.vanguard.com/us/FundsInvQuestionnaire
"Simplicity is the ultimate sophistication" - Leonardo Da Vinci
Quaestner
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Re: suggest 50/50 portfolio

Post by Quaestner »

Wild Willie wrote: Sat Dec 22, 2018 5:41 pm With a withdrawal schedule that averages about 3.7% and 2%?? inflation rate, we are starting to go backwards slightly.
If you feel you are going backward, what if you suspended the inflation adjustments? Just leave it at 3.7% and forget it (for a while). Will you miss the bump? Does your lifestyle feel so crimped that you feel the need to ratchet up withdrawals each year? Just a suggestion (as you asked for).
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