What ratio are you stocks/bonds and how old are you?

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tc101
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What ratio are you stocks/bonds and how old are you?

Post by tc101 » Wed Jun 24, 2015 11:48 am

I am 65 and 50/50. I am thinking about modifying this to something that changes yearly, like age minus 10 in bonds.

In spite of all the great advice here about recency and market timing I notice on this board that peoples percentage in stocks is lots higher than it was back in 2009.

How old are you, what percent are you in stocks, and why?
. | The most important thing you should know about me is that I am not an expert.

bigred77
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Re: What ratio are you stocks/bonds and how old are you?

Post by bigred77 » Wed Jun 24, 2015 12:00 pm

75/25 at age 30.

I think this is slightly conservative for my age, at least compared to many experts/target date funds. The "cost" of giving up and small piece of expected/historical return versus the larger (and I consider significant) reduction in expected/historical volatility seems like a good value proposition to me.

This AA allows me to be more comfortable tilting to more volatile equity sub-classes. I overweight small, value, EM, and REITs. I also hold more debt than most here would feel comfortable with and I have very little liquidity (almost no cash on hand to speak of outside of what I hold in a separate account to pay property taxes and insurance at the end of the year. I run pretty lean, at times my checking account hits single digits :shock: ). I hope to remedy the debt and lack of liquidity as I increase my income and years of working.

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jhfenton
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Re: What ratio are you stocks/bonds and how old are you?

Post by jhfenton » Wed Jun 24, 2015 12:06 pm

Ages 45 and 45, 100% equities (excluding short-term reserves), mid-to-upper six figures, including 50/50 US/Intl and tilted toward small, value, and emerging markets.

We plan to start dialing it back gradually in 5 years and accelerating the transition in 10 years (planned retirement in 20). Our AA in retirement will probably be somewhere between 75/25 and 50/50 depending on a variety of factors, with 60/40 being my expectation.

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Rx 4 investing
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Re: What ratio are you stocks/bonds and how old are you?

Post by Rx 4 investing » Wed Jun 24, 2015 12:16 pm

Hi tc 101:


I think you are on the right track and OK for now, and
I say that with confidence because one of the smartest men I know, Mr. Bogle, said this about stock / bond allocation and age:

" As I wrote in Bogle on Mutual Funds nearly a decade ago, In an uncertain world, tactical change should be made sparingly, and only if you are prepared to take the risk of being wrong."

In my book, I presented a basic asset allocation model that recommended that older investors, no longer adding to their assets with additional investments and becoming increasingly dependent on income, should focus on a 50/50 stock/bond allocation, reduced to 35% for investors over the age of 75. "
(From Twelve Pillars of Wisdom)

I am soon to be 58, and am 50% stocks / 50% bonds. A bit conservative for some, but that's my risk-tolerance based on worst twelve months, and maximum drawdown, i.e. "How much can I afford to lose?" . (See Merriman table at link).

At the beginning of the year, due to valuation differences, I tried to lower my stock risk by splitting stocks equally between US and international, keying off country comparisons based on Shiller's CAPE values.

Merriman Fine Tuning Asset Allocation 2015: http://paulmerriman.com/fine-tuning-ass ... tion-2015/

Mr. Bogle's Twelve Pillars: http://www.vanguard.com/bogle_site/april272001.html

Good luck in the markets!
“Everyone is a disciplined, long-term investor until the market goes down.” – Steve Forbes

asif408
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Re: What ratio are you stocks/bonds and how old are you?

Post by asif408 » Wed Jun 24, 2015 12:24 pm

I am 35 years old and 70% stocks/30% bonds, though my allocation has drifted up to 75/25 in the last year or so. Although I believe in the stock premium, I don't believe it is guaranteed and I figure I can get most of the return with a 70-75% stock allocation that a 100% stock allocation gets with less volatility. I like Benjamin Graham's 25/75 advice.

I also save a good chunk of my salary and live below my means so don't feel the need to take excessive risk (which I define for myself as more than 80% stocks).

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Re: What ratio are you stocks/bonds and how old are you?

Post by lack_ey » Wed Jun 24, 2015 12:25 pm

About 69% stocks, 18% bonds, 13% cash, counting all assets together, which is what I do. That includes short-term reserves and everything else. No home equity or other assets other than a car almost a decade old though with low mileage. Age 27.

I'm probably moving in a year, though, and may purchase a house if that makes financial sense, so the allocation is a little safer than it might otherwise be.

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Bogle101
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Re: What ratio are you stocks/bonds and how old are you?

Post by Bogle101 » Wed Jun 24, 2015 12:26 pm

100% - Stock
0% - Bond
Age: 31
25% S&P 500 | 25% Extended Market | 20% International | 10% REIT | 10% Sector Funds | 10% Cash

wfrobinette
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Re: What ratio are you stocks/bonds and how old are you?

Post by wfrobinette » Wed Jun 24, 2015 12:29 pm

Age 44

80/20

60/40 us/int
LB 15
LV 15
SCV 30
ILB 15
ISV 15
EM 10

75 Inter-term corp bonds
25 inter-term US gov

I plan to move stock/bond allocations as the VG 2035 target retirement but plan to get into retirement by 60

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Re: What ratio are you stocks/bonds and how old are you?

Post by dewey » Wed Jun 24, 2015 12:33 pm

Age 66. Retired. 55/45 equities/bonds. Wife and I each have a small pension plus SS. We own our home. Our portfolio has two commas.
“The only freedom that is of enduring importance is freedom of intelligence…”

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SimpleGift
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Re: What ratio are you stocks/bonds and how old are you?

Post by SimpleGift » Wed Jun 24, 2015 12:36 pm

tc101 wrote:How old are you, what percent are you in stocks, and why?
Both of us are in our late 60s, and we've kept a 50% stock/50% bond allocation ever since we sold a business and retired in our late 50s. We'll likely keep this same allocation to the end. We were first attracted to the 50/50 portfolio, partly on Ben Graham's recommendation:
Benjamin Graham in [i]The Intelligent Investor[/i], 1949, wrote:We are thus led to put forward to most of our readers what may appear to be an oversimplified 50-50 formula. Under this plan the guiding rule is to maintain as nearly as practicable an equal division between bond and stock holdings…We are convinced that our 50-50 version of this approach makes good sense for the defensive investor.
…and also partly from research showing that the average real returns of a 50/50 portfolio since 1926 have been equivalent whether the U.S. economy was in recession or expansion. Great consistency!
Last edited by SimpleGift on Wed Jun 24, 2015 12:38 pm, edited 1 time in total.

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Steadfast
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Re: What ratio are you stocks/bonds and how old are you?

Post by Steadfast » Wed Jun 24, 2015 12:38 pm

Age 39, approximately 70/20/10 stocks, bonds, cash.
We don't see things as they are, we see things as we are.

dewey
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Re: What ratio are you stocks/bonds and how old are you?

Post by dewey » Wed Jun 24, 2015 12:41 pm

66. 55/45 equities/bonds. Wife and I each have small pensions plus SS. Own our home. Portfolio has two commas.
“The only freedom that is of enduring importance is freedom of intelligence…”

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IlikeJackB
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Re: What ratio are you stocks/bonds and how old are you?

Post by IlikeJackB » Wed Jun 24, 2015 12:44 pm

Like you, I'm 65 and 50/50. I'm retired and intend to hold this allocation for a long time. Reason? Nobody knows nothin', myself included. Heavily influenced by the writings of Ben Graham and John Bogle.
"Do what you will, the capital is at hazard." Justice Samuel Putnam, Harvard College vs Amory, 1830. The "Prudent Man Rule."

Gropes & Ray
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Re: What ratio are you stocks/bonds and how old are you?

Post by Gropes & Ray » Wed Jun 24, 2015 12:45 pm

29 - 90/10

I am a believer that a high share of equity isn't all that risky over the long term (30+ years). However, once you're over 75 and biology dictates a shortened timeline, maybe there is no reason to take much risk at all.

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Re: What ratio are you stocks/bonds and how old are you?

Post by mindboggling » Wed Jun 24, 2015 12:49 pm

I'm 62. 40% stock/60% bonds. Retired, but working part-time. Non-COLAed pension. No SS yet.

steve
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jeff1949
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Re: What ratio are you stocks/bonds and how old are you?

Post by jeff1949 » Wed Jun 24, 2015 12:54 pm

tc101 wrote:I am 65 and 50/50.
Me too! :sharebeer

I'm there because it is a matter of convenience in my particular case.

Half of my bonds are I-Bonds from back in the 3.0%+ days. No way I'm giving those up before they fully mature.

The other half are in what I call "illiquid bonds" which are actually real estate contracts where I am the seller/bank. So that is not going to change anytime soon unless the buyers decide to refinance. They are averaging around 7% return so I hope they do not refinance.

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Re: What ratio are you stocks/bonds and how old are you?

Post by hirlaw » Wed Jun 24, 2015 1:02 pm

I'm 59 and wife is 60.

We are 45% equity and 55% fixed income/cash. Thinking about moving to 40% equity and 60% fixed income.

A factor: We may be drawing down soon and am concerned with sequence of return risk -- research by Pfau.

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Re: What ratio are you stocks/bonds and how old are you?

Post by timboktoo » Wed Jun 24, 2015 1:04 pm

Age is 33
33% bonds

No, I'm not following Age In Bonds intentionally :) I have a lazy portfolio of 1/3 Total Bond, 1/3 Total Stock, 1/3 Total International.

- Tim

Gropes & Ray
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Re: What ratio are you stocks/bonds and how old are you?

Post by Gropes & Ray » Wed Jun 24, 2015 1:10 pm

jeff1949 wrote: The other half are in what I call "illiquid bonds" which are actually real estate contracts where I am the seller/bank. So that is not going to change anytime soon unless the buyers decide to refinance. They are averaging around 7% return so I hope they do not refinance.
I'm curious about these. It sounds like an individual contract between you and one other party, which would be riskier than a diverse fund of real estate loans. I might consider these more like equities. Pretty good return though.

pobox2001
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Re: What ratio are you stocks/bonds and how old are you?

Post by pobox2001 » Wed Jun 24, 2015 1:11 pm

48

60/40. Recently lowered from 70/30 (which is more my risk tolerance level) as I don't HAVE to take as much risk (based on portfolio size and expected expenses in retirement). I can't say I've "won the game" but I feel I'm ahead and it's the last inning (hope to retire next year), so don't blow it!

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Re: What ratio are you stocks/bonds and how old are you?

Post by GoldenFinch » Wed Jun 24, 2015 1:13 pm

I'm 48 and my husband is about the same age. We are 75/15/10 stocks/bonds/cash. I am one of the people who can't wrap my mind around bonds at the moment. Maybe in a few years (10?) I will increase bonds.

JDot
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Re: What ratio are you stocks/bonds and how old are you?

Post by JDot » Wed Jun 24, 2015 1:16 pm

33 yoa
100% stocks

recently started to do more in international

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Re: What ratio are you stocks/bonds and how old are you?

Post by Boomer01 » Wed Jun 24, 2015 1:17 pm

32 - 80/20

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Re: What ratio are you stocks/bonds and how old are you?

Post by DTSC » Wed Jun 24, 2015 1:18 pm

Age 49 and 44.
60% stock, 40% bonds

spectec
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Re: What ratio are you stocks/bonds and how old are you?

Post by spectec » Wed Jun 24, 2015 1:21 pm

Average age for my wife and me is 69.
She is retired, I'm still working & accumulating.
We are 25/75 - (much of the 75 is in cash/CD's)
We are obviously very conservative.
Don't gamble; take all your savings and buy some good stock and hold it till it goes up, then sell it. If it don't go up, don't buy it. - Will Rogers

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Re: What ratio are you stocks/bonds and how old are you?

Post by MichaelRpdx » Wed Jun 24, 2015 1:27 pm

58 and 80/20.

My Bogle-ization is only a couple of years old. After managing my own individual equity holdings during both 2008 and 2000 volatility just doesn't scare me so much.
Be Appropriate && Follow Your Curiosity

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matjen
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Re: What ratio are you stocks/bonds and how old are you?

Post by matjen » Wed Jun 24, 2015 1:35 pm

Ages 49 and 43. 75% equity 25% fixed income
A man is rich in proportion to the number of things he can afford to let alone.

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parsi1
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Re: What ratio are you stocks/bonds and how old are you?

Post by parsi1 » Wed Jun 24, 2015 1:36 pm

55 years old currently in Target retirement 2020 which is 60/40. Thinking about switching to TR2025 and leave it there permanently.

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Re: What ratio are you stocks/bonds and how old are you?

Post by CaliforniaInvestor » Wed Jun 24, 2015 1:41 pm

24 years old and currently ~90/10.

This will decrease to probably 75/25 as the year goes on as most of my contributions are to my 401k, which is invested in a 60/40 balanced fund, trim some American stock holdings in lieu for TBM, and possibly contribute to I-Bonds come this November.
75% Equity : 50/50 American/International / 25% Bonds

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Re: What ratio are you stocks/bonds and how old are you?

Post by Rebecca_S » Wed Jun 24, 2015 1:46 pm

38 + 39 years old, we use age in bonds. This is conservative but fits our needs and risks.

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Re: What ratio are you stocks/bonds and how old are you?

Post by dc81584 » Wed Jun 24, 2015 1:47 pm

Age: 30
AA: 85/15

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Re: What ratio are you stocks/bonds and how old are you?

Post by stevewolfe » Wed Jun 24, 2015 1:48 pm

43 / 41. 40% stock, 60% fixed income.

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Re: What ratio are you stocks/bonds and how old are you?

Post by Ice-9 » Wed Jun 24, 2015 1:55 pm

42 yrs old and 70% equities / 30% fixed income.

Wife is 44 and slightly more aggressive with whatever the Target Retirement fund gives her.

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Re: What ratio are you stocks/bonds and how old are you?

Post by plannerman » Wed Jun 24, 2015 1:58 pm

Age 72, married and retired for 16-years.
60% equities
35% bonds
5% cash

I have the next 10-year's cash needs liability matched with TIPS. I add to the end of the ladder when my portfolio is overweight in equities.

plannerman

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packet
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Re: What ratio are you stocks/bonds and how old are you?

Post by packet » Wed Jun 24, 2015 2:20 pm

47: 80/20

Based mostly on need (I'm willing to do whatever it takes and my ability is what it is).

I'm on the cusp of beginning my glide path which is based on my goal, progress towards that goal, with an age safety factor.

I have 4 planed steps, each at a certain percentage of my goal, but with a maximum age where I reduce equities by 5%... ultimately to end up at 60/40 no later than 56 years old.

I currently plan to remain at 60/40 forever... but that's 10ish years away, so, you never know... :)

:beerCheers,
packet
First round’s on me.

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Re: What ratio are you stocks/bonds and how old are you?

Post by 400rules » Wed Jun 24, 2015 2:27 pm

Age 68 - Retired in 2007

60% Bonds
20% Equities
20% Cash

Overly conservative since losing big chunk of assets in Lehman bankruptcy (2008). Have since recovered about one-fourth of lost assets thru bankruptcy court settlement payments over last 5 years. Further settlement payments unlikely.

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Re: What ratio are you stocks/bonds and how old are you?

Post by Spectre » Wed Jun 24, 2015 2:28 pm

28: 90% Stocks / 10% Bonds

At first (around 2011) I was 80/20 but I decided to up my equity allocation last year since I realized I have been contributing about 7% of my gross a month to a "safe" pension fund. I consider my pension contributions as if they are in a money market account.
Last edited by Spectre on Thu Jun 25, 2015 9:12 am, edited 1 time in total.

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Re: What ratio are you stocks/bonds and how old are you?

Post by Mike Scott » Wed Jun 24, 2015 2:32 pm

60/40 to retirement and then I may move toward 50/50.

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Re: What ratio are you stocks/bonds and how old are you?

Post by user5027 » Wed Jun 24, 2015 2:32 pm

Ages: 57 & 61
70% equities
25% bonds
5% cash

Theoretical
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Re: What ratio are you stocks/bonds and how old are you?

Post by Theoretical » Wed Jun 24, 2015 2:33 pm

30 and 23

65% Stocks/35% Bonds

In two years, this will be 75/25%, but I'm waiting on a few long term municipal bonds that have been called in in 2017 to actually mature.

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Re: What ratio are you stocks/bonds and how old are you?

Post by Quincy » Wed Jun 24, 2015 2:39 pm

80/20 stocks/bonds.
37y/o
3 fund diehard.
20% TBM
20%TISM
60%TSM

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Re: What ratio are you stocks/bonds and how old are you?

Post by SHL » Wed Jun 24, 2015 2:43 pm

Age 60, 2 years from retirement - 40% stocks, 60% bonds
Stephen

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Re: What ratio are you stocks/bonds and how old are you?

Post by eagerinvestor » Wed Jun 24, 2015 2:50 pm

My wife and I are 100% equities, 70% Total Stock and 30% International. We are in our early 30s and make six figures currently. We considered doing 20-30% bonds for a while, but decided against it. We will have a pension of about $50K a year, combined, starting when we are 40, so we will need very little from our investments as we plan to hold part time jobs. We will semi-retire at 40, so our needed income will be around $75K, which will be very easily attainable working part time. All of these reasons are why we do not feel the need to have bonds, but we will start shifting towards them around 50 years old.

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Re: What ratio are you stocks/bonds and how old are you?

Post by mhc » Wed Jun 24, 2015 2:53 pm

packet wrote:47: 80/20

Based mostly on need (I'm willing to do whatever it takes and my ability is what it is).

I'm on the cusp of beginning my glide path which is based on my goal, progress towards that goal, with an age safety factor.

I have 4 planed steps, each at a certain percentage of my goal, but with a maximum age where I reduce equities by 5%... ultimately to end up at 60/40 no later than 56 years old.

I currently plan to remain at 60/40 forever... but that's 10ish years away, so, you never know... :)

:beerCheers,
packet
I am just about exactly the same as this.

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Re: What ratio are you stocks/bonds and how old are you?

Post by andrew928 » Wed Jun 24, 2015 2:53 pm

Age: 21
Stocks: 90%
Bonds: 10%

Reason? Young, currently am making good money while having a place to live rent free with parents while attending college. Figure I should ride the gravy train and get as far ahead as possible while I still can.

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Re: What ratio are you stocks/bonds and how old are you?

Post by letsgobobby » Wed Jun 24, 2015 2:58 pm

Age 40.5, 60% stocks, 40% fixed income

stocks are 60% international, 40% domestic
fixed income is about 40% TBM, 40% stable value, and 20% I bonds

We're among the more conservative Bogleheads, for age. Low need and willingness to take risk, despite high ability.

If stocks got very cheap, I would buy more of them.

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bertie wooster
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Re: What ratio are you stocks/bonds and how old are you?

Post by bertie wooster » Wed Jun 24, 2015 3:02 pm

Ages: 38

70/30 stock/bond (in retirement accounts).

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Re: What ratio are you stocks/bonds and how old are you?

Post by dkturner » Wed Jun 24, 2015 3:21 pm

Age 72. 53% equity, 47% fixed income.

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Re: What ratio are you stocks/bonds and how old are you?

Post by amateurnovice » Wed Jun 24, 2015 3:29 pm

90/10 at 30. Also have a 401a I'm not too sure of but the government knows what's best anyway.

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danwhite77
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Re: What ratio are you stocks/bonds and how old are you?

Post by danwhite77 » Wed Jun 24, 2015 3:31 pm

100% equities (vast majority index). 38. Positive long term outlook for the US (and world).
"While some mutual fund founders chose to make billions, he chose to make a difference." - Dedication to Jack Bogle in 'The Bogleheads' Guide to Investing'.

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