Ira allocation

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
Jackhenryport
Posts: 26
Joined: Sat Jul 02, 2011 5:48 pm

Ira allocation

Post by Jackhenryport » Sun Nov 10, 2019 9:47 am

Have approx 1.5 million in nest egg, 74 yrs old, half ira, half taxable.

Allocation percentage for all is 40 percent. Index funds and st bonds in both ira and taxable

Ira is 30 percent While taxable is 50 percen allocation

I receive enough in rmd, dividends, and ss to live fine.

My question since I only take rmd and it should last long after me and my wife should I be more aggressive
In the ira to build up its value for my 2 kids??

retiredjg
Posts: 38969
Joined: Thu Jan 10, 2008 12:56 pm

Re: Ira allocation

Post by retiredjg » Sun Nov 10, 2019 9:53 am

I think that depends entirely on how you and your wife "feel" about it.

If increasing your stock allocation would cause you any worry at all, even a little tiny bit, the answer is definitely no.

User avatar
JoMoney
Posts: 8150
Joined: Tue Jul 23, 2013 5:31 am

Re: Ira allocation

Post by JoMoney » Sun Nov 10, 2019 9:56 am

It sounds like you've "won the game" and have a plan that you're comfortable with and is working for you.
The beneficiaries of what you leave behind can change to an allocation that suits them after it belongs to them. I would not jeopardize my own well being and comfort sleeping at night through market turmoil for the possibility of maybe leaving a bigger estate.
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham

User avatar
Wiggums
Posts: 2378
Joined: Thu Jan 31, 2019 8:02 am

Re: Ira allocation

Post by Wiggums » Sun Nov 10, 2019 10:04 am

It’s a wonderful feeling to have more than your current expenses. Even better, that your family may benefit when you and your wife no longer need it. But that doesn’t necessarily mean you should change your asset allocation.

Retirejg is 100% right. Your asset allocation is really a personal decision and your wife should weigh in on the decision. Some would say, take risks because you don’t need the money. Others say, you already won the game. Why take risks?

I personally think that your asset allocation is reasonable. You could add 10% more equities, but I wouldn’t do it for the children. I’d do it because you and your wife feel like the risk/reward is something you can handle and will stay the coarse in a big market downturn. If down market will upset either one of you, I would not make any changes.

Good luck to you both.

pkcrafter
Posts: 13738
Joined: Sun Mar 04, 2007 12:19 pm
Location: CA
Contact:

Re: Ira allocation

Post by pkcrafter » Sun Nov 10, 2019 10:29 am

Jackhenryport wrote:
Sun Nov 10, 2019 9:47 am
Have approx 1.5 million in nest egg, 74 yrs old, half ira, half taxable.

Allocation percentage for all is 40 percent. Index funds and st bonds in both ira and taxable

Ira is 30 percent While taxable is 50 percent allocation

I receive enough in rmd, dividends, and ss to live fine.

My question since I only take rmd and it should last long after me and my wife should I be more aggressive
In the ira to build up its value for my 2 kids??
The answer depends somewhat on what your current withdrawal rate is. Is it 4% or higher? Sounds like it may be a little less than 4%, so you may be able to increase equity allocation a bit (ability) but you really have no need.

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.

Post Reply