Re-balance advice; portfolio review; general insight

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robindbee
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Joined: Tue Jul 31, 2018 10:48 am

Re-balance advice; portfolio review; general insight

Post by robindbee » Fri May 22, 2020 4:56 pm

I am 66 yo and collect $22K annually from SS. My living expenses are low. I have been retired since 2018.
I need help re-balancing and a plan going forward bc I'm moving funds within my Roth and Reg IRA around too much and don't have a plan of withdrawal other than using MM funds when I need to supplement monthly SS. It looks like yearly shortfall between SS and expenses will be approx $15K based on approx $38K needed PA.


I have TIAA TRAD from employment of $88K which I consider part of bond holdings.

I have VG funds in 3 buckets: MM/ Trad IRA/ Roth IRA

In VG MM: $32K

In VG Trad IRA: Total Bond = $154K
Wellington= $106K

In VG Roth IRA: Div Apprec= $17K
Equity Index= $19K
Total Bond= $43K
Wellington= $21K


According to today's VG portfolio analysis I ran today I have:
Short-term: 6.8%
Bonds: 75.2% (including the $88K Tiaa Trad which I've added to VG analysis)
Stocks: 18%

I know this is out of whack. I'm not sure how to re-balance now; keep a re-balance going forward; and figure out how to withdraw or from where, monthly or yearly going forward.
I've looked at the VG All-in-one-Funds and don't know which is best or if it even is best; or to just shift around VG bond holdings to get to an appropriate AA (more stock, less bond)

Thank you for any and all advice. Be as specific as you want!!
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steve roy
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Re: Re-balance advice; portfolio review; general insight

Post by steve roy » Fri May 22, 2020 5:22 pm

What asset allocation do you want?

DW and I had a 30/70 until Recent Events. Now it's 26/74. Our plan is to keep all equities but not add to them. (We will rebalance when day-to-day events smooth out. For now, we are making no moves.)

I were you, I would cover the shortfall from bonds or money market funds.

retired@50
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Re: Re-balance advice; portfolio review; general insight

Post by retired@50 » Fri May 22, 2020 5:47 pm

steve roy wrote:
Fri May 22, 2020 5:22 pm
What asset allocation do you want?
+1
You've got to know what your aiming for before you shoot.

For simplicity, you could just buy an all-in-one fund like the Vanguard Target Retirement Income Fund (VTINX) that holds approximately 30% stock and 70% bonds. Since it's an all in one fund, you don't have to worry about what part of your portfolio to sell. Simple.

You have enough money it would appear to support the $15k annual withdrawal ( I added things up to $480k ).

Regards,
This is one person's opinion. Nothing more.

iamblessed
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Re: Re-balance advice; portfolio review; general insight

Post by iamblessed » Fri May 22, 2020 9:01 pm

You might look at LifeStrategy Conservative Growth

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grabiner
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Re: Re-balance advice; portfolio review; general insight

Post by grabiner » Fri May 22, 2020 9:26 pm

retired@50 wrote:
Fri May 22, 2020 5:47 pm
For simplicity, you could just buy an all-in-one fund like the Vanguard Target Retirement Income Fund (VTINX) that holds approximately 30% stock and 70% bonds. Since it's an all in one fund, you don't have to worry about what part of your portfolio to sell. Simple.
This may not quite be feasible because of the TIAA Traditional Annuity. With some versions, it would take nine years to get the money out of the fund.

Even if it is feasible, I would prefer keeping the TIAA Traditional intact except for RMDs, because it is a better fixed-income option than anything Vanguard offers. If you want about 30% of your portfolio in stock, you could keep the TIAA Traditional, and put everything else in Vanguard LifeStrategy Conservative Growth which is 40% stock.
Wiki David Grabiner

pkcrafter
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Re: Re-balance advice; portfolio review; general insight

Post by pkcrafter » Fri May 22, 2020 11:26 pm

robindbee, rebalancing is resetting your desired asset allocation back to target, so you aren't really doing that because it sounds like you don't actually have a target.

For your age, I think 30-40% in stocks is about right. Count all accounts as one portfolio.

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.

Topic Author
robindbee
Posts: 41
Joined: Tue Jul 31, 2018 10:48 am

Re: Re-balance advice; portfolio review; general insight

Post by robindbee » Sat May 23, 2020 3:15 pm

Bumping, if ok:
I am 66 yo and collect $22K annually from SS. My living expenses are low. I have been retired since 2018.
I need help re-balancing and a plan going forward bc I'm moving funds within my Roth and Reg IRA around too much and don't have a plan of withdrawal other than using MM funds when I need to supplement monthly SS. It looks like yearly shortfall between SS and expenses will be approx $15K based on approx $38K needed PA.


I have TIAA TRAD from employment of $88K which I consider part of bond holdings.

I have VG funds in 3 buckets: MM/ Trad IRA/ Roth IRA

In VG MM: $32K

In VG Trad IRA: Total Bond = $154K
Wellington= $106K

In VG Roth IRA: Div Apprec= $17K
Equity Index= $19K
Total Bond= $43K
Wellington= $21K

According to today's VG portfolio analysis I ran today I have:
Short-term: 6.8%
Bonds: 75.2% (including the $88K Tiaa Trad which I've added to VG analysis)
Stocks: 18%

So, if I want my AA to be 30% stock/70% bonds, and Tiaa is staying where it is ($88K), to bring up my stock allocation from 18% to 30%, what should I transfer from? VG Total Bond that I have in Roth ($154K), or Total Bond in Regular IRA ($43K)? And should I leave my stock funds alone, or consolidate them? Is there a particular 'good' time to transfer from bond funds to stock funds? Should I just add more from bond fund to each stock fund or choose a new fund?
Thank you all!!

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