My plan is to implement a 3-fund bogglehead approach at Fidelity via iShares as follows:
- iShares Core S&P Total Market ETF (ITOT)
iShares Core MSCI Total International Stock ETF (IXUS)
iShares Core Total U.S. Bond Market ETF (AGG)
So, here is my question. How do I factor this annuity into my 3-fund allocation? I have about 20 years until retirement and am considering a 20 % bonds/80 % stocks allocation. Seeing as how this annuity is a safe investment returning 5%+ year over year, and already represents 16% of my portfolio, is it redundant with a 20% bond fund allocation? Should I allocate 16% annuity / 84% stocks? Or something else? Perhaps 16% Annuity / 74% socks / 10 % REIT?
Any food for thought would be very appreciated. Thanks!