Retiree Accumulation/Withdrawal Phase -- How many funds do you have? Allocation? Withdrawal strategy?

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.
User avatar
Sandtrap
Posts: 5472
Joined: Sat Nov 26, 2016 6:32 pm
Location: Hawaii😀 Northern AZ.😳 Retired.

Retiree Accumulation/Withdrawal Phase -- How many funds do you have? Allocation? Withdrawal strategy?

Post by Sandtrap » Wed Feb 01, 2017 3:39 pm

A thread on "How Many Funds Do You Have In Your Portfolio" in the context of where you are in the retiree "Withdrawal Phase" might help others.
Retiree or near Retiree.

0. Accumulation phase also welcome.

1.Withdrawal Phase (how long into retirement)?

2. Number of funds? Allocation? Or AA ("age in bonds", 50/50, etc, Other?)

3. Optional. . . (what funds?)

4. Optional. . . (withdrawal strategy?)

5a. Pension/external income stream vs only Investment Portfolio as primary or supplemental retirement income stream?

5b. There seems to be different strategies between those with moderate/substantial pensions vs those without a pension. If so, the Investment Portfolio has to fullfill a greater or lesser role in the areas of Inflation Protection, Growth of Principal, and either partial or total Income Stream in retirement. How have you approached this?
Last edited by Sandtrap on Fri Feb 03, 2017 12:12 pm, edited 8 times in total.

User avatar
Sandtrap
Posts: 5472
Joined: Sat Nov 26, 2016 6:32 pm
Location: Hawaii😀 Northern AZ.😳 Retired.

Re: Accumulation or Withdrawal Phase -- How many funds do you have? Allocation?

Post by Sandtrap » Wed Feb 01, 2017 3:43 pm

1 "month" into retirement.
Portfolio under early construction.

Withdrawal phase/retired
8 funds (for now)
-- 50/50 allocation.

Vanguard Wellesley Income Fund -- Admiral (VWIAX)
Vanguard Balanced Index -- Admiral -- (VBIAX)
Vanguard Total Stock Market -- Admiral -- (VTSAX)
Vanguard Total Bond Index -- Admiral -- VBTLX
others.

No pension. All taxable.
Last edited by Sandtrap on Fri Feb 03, 2017 12:32 pm, edited 2 times in total.

bigred77
Posts: 2006
Joined: Sat Jun 11, 2011 4:53 pm

Re: Accumulation or Withdrawal Phase -- How many funds do you have? Allocation?

Post by bigred77 » Wed Feb 01, 2017 3:59 pm

Accumulation Phase

3 primary Investment vehicles:
Roth IRA 1: 1 fund
Roth IRA 2: 2 funds
401k (w/ brokeragelink option via fidelity): 10 funds

AA:
30% US TSM
20% Total International

5% Each: US REITs, International REITS, US SCV, International SC, EM

10% Total Bond Market
10% TIPS
5% Investment Grade Corp Bonds

Jack FFR1846
Posts: 8104
Joined: Tue Dec 31, 2013 7:05 am

Re: Accumulation or Withdrawal Phase -- How many funds do you have? Allocation?

Post by Jack FFR1846 » Wed Feb 01, 2017 4:02 pm

accumulation

3 fund types (various accounts so the names vary between brokerages)
US stock index
US bond index
International developed bond index

50/50 stock/bond 70/30 US/international stock
Bogle: Smart Beta is stupid

Grogs
Posts: 441
Joined: Tue Mar 24, 2015 4:55 pm

Re: Accumulation or Withdrawal Phase -- How many funds do you have? Allocation?

Post by Grogs » Wed Feb 01, 2017 4:09 pm

1. Accumulating, probably about 15 years from retirement.

2. Six funds. Would be three, but the 401k has Blackrock funds.

78/22 stock/bond
67/33 domestic/international

3.

Vanguard Total Stock Market
Vanguard Total International Stock Market
Blackrock S&P 500
Blackrock Market Completion
Blackrock International Stock Market
Blackrock Total Bond Market

User avatar
Portfolio7
Posts: 451
Joined: Tue Aug 02, 2016 3:53 am

Re: Retiree Accumulation/Withdrawal Phase -- How many funds do you have? Allocation? Withdrawal strategy?

Post by Portfolio7 » Thu Feb 02, 2017 7:11 pm

Accumulation, 10 years from Retirement, +/- 5 years. I modeled my retirement cash flows so that withdrawls yield desired total income after consideration of other variable cash flows. Avg maybe 3.5% in early years. I'm sure it will change a lot over time, but I'll update the model as needed.

Some funds in my 401k are Proprietary to my employer... doesn't look like a 'vanguard in disguise' so I'm not sure what it is precisely.

Large Company Value Index Proprietary 4.00%
Fidelity OTC K FOCKX 4.00%
Vanguard Midcap Value VASVX 8.00%
Small Cap Value Index Proprietary 8.00%
REIT Index Proprietary 4.00%

DFA Emerging Mkt Portfolio Inst DFEMX 12.00%
DFA International Small Company I DFISX 12.00%
DFA Global Real Estate DFGEX 4.00%

Stable Value Proprietary 22.00%
Vanguard Int Treasury Adm VFIUX 8.00%
Vanguard Tips VIPIX 4.00%
An investment in knowledge pays the best interest.

User avatar
blueblock
Posts: 865
Joined: Sun Oct 19, 2014 6:06 pm
Location: Wisconsin

Re: Retiree Accumulation/Withdrawal Phase -- How many funds do you have? Allocation? Withdrawal strategy?

Post by blueblock » Thu Feb 02, 2017 7:42 pm

1.Withdrawal Phase (how long into retirement)?
Approaching two years

2. Number of funds? Allocation? Other?
Total Bond Fund (45%), Total US Stock (45%), Total International (10%)

3. Optional. . . (what funds?)
Taxable and Roth are all in sector ETFs (aka tilts)—12% of overall portfolio

4. Optional. . . (withdrawal strategy?)
2017 living expenses in checking
2018 living expenses in savings
2019 living expenses in CD in IRA

livesoft
Posts: 62977
Joined: Thu Mar 01, 2007 8:00 pm

Re: Retiree Accumulation/Withdrawal Phase -- How many funds do you have? Allocation? Withdrawal strategy?

Post by livesoft » Thu Feb 02, 2017 7:58 pm

We have to have a number of accounts: taxable, traditional IRAs, Roth IRAs, inherited IRAs, 529 plans, 401(k)s, 403(b)s, so that's 13 accounts.

These accounts have different funds available to them. For instance, the inherited IRAs are too small to get Admiral funds. And the 403(b)s and 401(k)s have a limited number of options. And then there is tax-loss harvesting where near equivalent funds are used for the same asset classes.

This means we have quite a number of funds, but when I think about them, I group them as follows:

Total US Bonds: FBIDX, VBMFX, VBTLX, AGG, BND
Other bonds: TIAA Traditional, VCSH, I bonds

US stocks:
Total [mostly large-cap] US stocks: VTI, VLCAX, VV, VFIAX
US Small-cap value: VBR, IJS, VSIAX

Total Foreign stocks: VEU, VEA
Foreign small: VSS, DGS

Other: TIAA Real Estate account.

The exact percentages in each ticker symbol do not really matter to me as long as the overall portfolio meets my asset allocation in an extremely tax-efficient way. Also most accounts do not get any additional money and most accounts get no transactions. Thus, it is all pretty simple.
Wiki This signature message sponsored by sscritic: Learn to fish.

User avatar
Sandtrap
Posts: 5472
Joined: Sat Nov 26, 2016 6:32 pm
Location: Hawaii😀 Northern AZ.😳 Retired.

Re: Retiree Accumulation/Withdrawal Phase -- How many funds do you have? Allocation? Withdrawal strategy?

Post by Sandtrap » Thu Feb 02, 2017 8:36 pm

livesoft wrote:We have to have a number of accounts: taxable, traditional IRAs, Roth IRAs, inherited IRAs, 529 plans, 401(k)s, 403(b)s, so that's 13 accounts.

These accounts have different funds available to them. For instance, the inherited IRAs are too small to get Admiral funds. And the 403(b)s and 401(k)s have a limited number of options. And then there is tax-loss harvesting where near equivalent funds are used for the same asset classes.

This means we have quite a number of funds, but when I think about them, I group them as follows:

Total US Bonds: FBIDX, VBMFX, VBTLX, AGG, BND
Other bonds: TIAA Traditional, VCSH, I bonds

US stocks:
Total [mostly large-cap] US stocks: VTI, VLCAX, VV, VFIAX
US Small-cap value: VBR, IJS, VSIAX

Total Foreign stocks: VEU, VEA
Foreign small: VSS, DGS

Other: TIAA Real Estate account.

The exact percentages in each ticker symbol do not really matter to me as long as the overall portfolio meets my asset allocation in an extremely tax-efficient way. Also most accounts do not get any additional money and most accounts get no transactions. Thus, it is all pretty simple.
Thanks for sharing, "livesoft".
In your opinion, are there advantages to have US Small cap VSIAX and Index 500 VFIAX instead of Vanguard Total Stock Market VTSAX which perhaps encompasses small/med/large cap in a single fund?
Also, hope I'm asking this right, does the Vanguard 500 Index Large Cap serve to "anchor" as a solid core fund holding, that side of the equit. allocation?
Thanks again,
j

livesoft
Posts: 62977
Joined: Thu Mar 01, 2007 8:00 pm

Re: Retiree Accumulation/Withdrawal Phase -- How many funds do you have? Allocation? Withdrawal strategy?

Post by livesoft » Thu Feb 02, 2017 8:50 pm

Sandtrap wrote:In your opinion, are there advantages to have US Small cap VSIAX and Index 500 VFIAX instead of Vanguard Total Stock Market VTSAX which perhaps encompasses small/med/large cap in a single fund?
Also, hope I'm asking this right, does the Vanguard 500 Index Large Cap serve to "anchor" as a solid core fund holding, that side of the equit. allocation?
Thanks again,
j
I believe in having a small-cap and value tilted portfolio. There are many threads and discussions on bogleheads.org which show that a small-cap and value tilted portfolio is the one to have and better than a so-called 3-fund portfolio. I would have VTSAX and VSIAX as my only two US equity funds if I could, but I cannot for the following reasons:

1. We must use VFIAX because it is the only index fund in a 401(k). VLCAX and VV are used as replacement funds for VTSAX when tax-loss harvesting.

2. We must use VBR and IJS because VSIAX is not available for no fee at a few of our brokers.

3. We use IJS because of tax-efficiency and tax-loss harvesting purposes.
Wiki This signature message sponsored by sscritic: Learn to fish.

User avatar
Sandtrap
Posts: 5472
Joined: Sat Nov 26, 2016 6:32 pm
Location: Hawaii😀 Northern AZ.😳 Retired.

Re: Retiree Accumulation/Withdrawal Phase -- How many funds do you have? Allocation? Withdrawal strategy?

Post by Sandtrap » Thu Feb 02, 2017 9:23 pm

livesoft wrote:
Sandtrap wrote:In your opinion, are there advantages to have US Small cap VSIAX and Index 500 VFIAX instead of Vanguard Total Stock Market VTSAX which perhaps encompasses small/med/large cap in a single fund?
Also, hope I'm asking this right, does the Vanguard 500 Index Large Cap serve to "anchor" as a solid core fund holding, that side of the equit. allocation?
Thanks again,
j
I believe in having a small-cap and value tilted portfolio. There are many threads and discussions on bogleheads.org which show that a small-cap and value tilted portfolio is the one to have and better than a so-called 3-fund portfolio. I would have VTSAX and VSIAX as my only two US equity funds if I could, but I cannot for the following reasons:

1. We must use VFIAX because it is the only index fund in a 401(k). VLCAX and VV are used as replacement funds for VTSAX when tax-loss harvesting.

2. We must use VBR and IJS because VSIAX is not available for no fee at a few of our brokers.

3. We use IJS because of tax-efficiency and tax-loss harvesting purposes.
Thanks, "livesoft".
So Vanguard small cap index fund VSIAX would be used to "value tilt" the somewhat equally balanced and diversified Total Stock Fund VTSAX to create greater potential yield while reducing the total equity percentage (mitigating risk while not sacrificing return)?
Is this strategy more appropriate for one in the "accumulation" phase vs a retiree in the "withdrawal" phase?

I was in the middle of reading Bernstein's "Intelligent Asset Allocator" and what you brought up seemed familiar.
Thanks for the help.
j

livesoft
Posts: 62977
Joined: Thu Mar 01, 2007 8:00 pm

Re: Retiree Accumulation/Withdrawal Phase -- How many funds do you have? Allocation? Withdrawal strategy?

Post by livesoft » Thu Feb 02, 2017 9:31 pm

Sandtrap wrote:So Vanguard small cap index fund VSIAX would be used to "value tilt" the somewhat equally balanced and diversified Total Stock Fund VTSAX to create greater potential yield [total return] while reducing the total equity percentage (mitigating risk while not sacrificing return)?
Is this strategy more appropriate for one in the "accumulation" phase vs a retiree in the "withdrawal" phase?
I think this strategy works for all ages and all investors whether accumulators or decumulators.

I am not claiming that one is mitigating risk by using a small-cap and value-tilted portfolio. I will claim it offers more rebalancing opportunities than a simple total US stock market portfolio.
Wiki This signature message sponsored by sscritic: Learn to fish.

User avatar
dwickenh
Posts: 1450
Joined: Sun Jan 04, 2015 9:45 pm
Location: Illinois

Re: Retiree Accumulation/Withdrawal Phase -- How many funds do you have? Allocation? Withdrawal strategy?

Post by dwickenh » Thu Feb 02, 2017 9:37 pm

Early retirement here,

50/50 asset allocation

Stock funds- Vanguard total stock market (VTSAX), Vanguard small cap index (VSMAX) Vanguard FTSE ex us (VFWAX) Vanguard Developed Foreign(VTMGX)

Bond funds- Vanguard interim-term Index (VBILX), Total Bond (VBTLX), Short term corporate (VFSUX), Short term (VSCSX)

Balance fund- Wellesley (VWIAX)

1 year in 1.93% interest checking
3 years in short term bonds
Waiting on SS and drawing from taxable account only at this time.
Also have roll-over IRA and 2 roths.

Dan
The market is the most efficient mechanism anywhere in the world for transferring wealth from impatient people to patient people.” | — Warren Buffett

User avatar
Sandtrap
Posts: 5472
Joined: Sat Nov 26, 2016 6:32 pm
Location: Hawaii😀 Northern AZ.😳 Retired.

Re: Retiree Accumulation/Withdrawal Phase -- How many funds do you have? Allocation? Withdrawal strategy?

Post by Sandtrap » Thu Feb 02, 2017 9:49 pm

dwickenh wrote:Early retirement here,

50/50 asset allocation

Stock funds- Vanguard total stock market (VTSAX), Vanguard small cap index (VSMAX) Vanguard FTSE ex us (VFWAX) Vanguard Developed Foreign(VTMGX)

Bond funds- Vanguard interim-term Index (VBILX), Total Bond (VBTLX), Short term corporate (VFSUX), Short term (VSCSX)

Balance fund- Wellesley (VWIAX)

1 year in 1.93% interest checking
3 years in short term bonds
Waiting on SS and drawing from taxable account only at this time.
Also have roll-over IRA and 2 roths.

Dan
Thanks, Dan.
I also happen to have Wellesley (VWIAX) but "bookended" with Wellington (VWENX) in addition to Total Stock (VTSAX) and Total Bond (VBTLX), amongst others.
Same allocation, 50/50, also waiting on SS.
For me, the Wellington/Wellesly "bookends" are there as containment for a subtrust account (also spouse likes them, a lot).
Would you care to share why you chose and have Wellesley Income Fund?
Thanks again,
j

nodenuff2
Posts: 357
Joined: Tue Mar 06, 2012 4:08 pm

Re: Retiree Accumulation/Withdrawal Phase -- How many funds do you have? Allocation? Withdrawal strategy?

Post by nodenuff2 » Thu Feb 02, 2017 9:52 pm

Withdrawal phase 3 years in. 6 Funds 51.7 stocks 37.5 bonds 10.8 cash stocks 80 US 20 International Vtsax, Vfiax, Vtblx Vmmxx Vtiax and one old actively managed fund I have held for 30+ years. Withdraw cash as needed. Dividends and interest go into cash. Closing in on rebalancing levels. Drawing SS and pension
2014 No. 42 2015 No.342 2016 No. 6 2017 238 what do I know? "Good bless America land that I love..."

Bogel0048
Posts: 121
Joined: Thu Sep 22, 2016 7:30 pm

Re: Retiree Accumulation/Withdrawal Phase -- How many funds do you have? Allocation? Withdrawal strategy?

Post by Bogel0048 » Thu Feb 02, 2017 10:09 pm

1.Withdrawal Phase (how long into retirement)?

Eight years into retirement.

2. Number of funds? Allocation?

Two main funds, both in taxable and IRAs (Smaller amounts of other funds in taxable that I don't want to sell due to gains since purchase)

Overall AA is 75% VTSAX / 25% VBILX, with most of VBILX in IRAs.

4. Optional. . . (withdrawal strategy?)

Taxable distributions set to settlement account, no withdrawals of principal.
IRA RMDs and SS benefits will start in 2018.

User avatar
dwickenh
Posts: 1450
Joined: Sun Jan 04, 2015 9:45 pm
Location: Illinois

Re: Retiree Accumulation/Withdrawal Phase -- How many funds do you have? Allocation? Withdrawal strategy?

Post by dwickenh » Thu Feb 02, 2017 10:30 pm

Sandtrap wrote:
dwickenh wrote:Early retirement here,

50/50 asset allocation

Stock funds- Vanguard total stock market (VTSAX), Vanguard small cap index (VSMAX) Vanguard FTSE ex us (VFWAX) Vanguard Developed Foreign(VTMGX)

Bond funds- Vanguard interim-term Index (VBILX), Total Bond (VBTLX), Short term corporate (VFSUX), Short term (VSCSX)

Balance fund- Wellesley (VWIAX)

1 year in 1.93% interest checking
3 years in short term bonds
Waiting on SS and drawing from taxable account only at this time.
Also have roll-over IRA and 2 roths.

Dan
Thanks, Dan.
I also happen to have Wellesley (VWIAX) but "bookended" with Wellington (VWENX) in addition to Total Stock (VTSAX) and Total Bond (VBTLX), amongst others.
Same allocation, 50/50, also waiting on SS.
For me, the Wellington/Wellesly "bookends" are there as containment for a subtrust account (also spouse likes them, a lot).
Would you care to share why you chose and have Wellesley Income Fund?
Thanks again,
j
Sandtrap(j),

I was attracted to Wellesley Income fund for its slow steady results and lack of volatility. I needed a large amount of bonds in my IRA to balance my taxable account. I liked the idea of a balance fund to hold a portion of my bonds. I also think the the management of this fund is 2nd to none. I did not take this decision to invest in Wellesley lightly. I am indexed in my other funds and a believer in low costs. I invested only after getting 4-5 opinions from trusted people on this forum.

Hope that explains the decision,

Best wishes for you and your retirement,

Dan
The market is the most efficient mechanism anywhere in the world for transferring wealth from impatient people to patient people.” | — Warren Buffett

User avatar
Sandtrap
Posts: 5472
Joined: Sat Nov 26, 2016 6:32 pm
Location: Hawaii😀 Northern AZ.😳 Retired.

Re: Retiree Accumulation/Withdrawal Phase -- How many funds do you have? Allocation? Withdrawal strategy?

Post by Sandtrap » Thu Feb 02, 2017 11:06 pm

dwickenh wrote:
Sandtrap wrote:
dwickenh wrote:Early retirement here,

50/50 asset allocation

Stock funds- Vanguard total stock market (VTSAX), Vanguard small cap index (VSMAX) Vanguard FTSE ex us (VFWAX) Vanguard Developed Foreign(VTMGX)

Bond funds- Vanguard interim-term Index (VBILX), Total Bond (VBTLX), Short term corporate (VFSUX), Short term (VSCSX)

Balance fund- Wellesley (VWIAX)

1 year in 1.93% interest checking
3 years in short term bonds
Waiting on SS and drawing from taxable account only at this time.
Also have roll-over IRA and 2 roths.

Dan
Thanks, Dan.
I also happen to have Wellesley (VWIAX) but "bookended" with Wellington (VWENX) in addition to Total Stock (VTSAX) and Total Bond (VBTLX), amongst others.
Same allocation, 50/50, also waiting on SS.
For me, the Wellington/Wellesly "bookends" are there as containment for a subtrust account (also spouse likes them, a lot).
Would you care to share why you chose and have Wellesley Income Fund?
Thanks again,
j
Sandtrap(j),

I was attracted to Wellesley Income fund for its slow steady results and lack of volatility. I needed a large amount of bonds in my IRA to balance my taxable account. I liked the idea of a balance fund to hold a portion of my bonds. I also think the the management of this fund is 2nd to none. I did not take this decision to invest in Wellesley lightly. I am indexed in my other funds and a believer in low costs. I invested only after getting 4-5 opinions from trusted people on this forum.

Hope that explains the decision,

Best wishes for you and your retirement,

Dan
Thanks for the help. Same thought process here. Same strategy. Same forum advice. Same funds. Layup on short par 4's. :D

User avatar
CABob
Posts: 4623
Joined: Sun Feb 25, 2007 8:55 pm
Location: Southern California

Re: Retiree Accumulation/Withdrawal Phase -- How many funds do you have? Allocation? Withdrawal strategy?

Post by CABob » Thu Feb 02, 2017 11:22 pm

1. Retired for 14 years.
2. In total I have about 10 funds but the biggest account is my IRA with a 3-fund portfolio plus some tilts. DW’s IRA is a Target Retirement fund. Also taxable accounts with a few individual stocks. Overall allocation is about 45/55.
3. See number 2.
4. Currently taking RMD but my strategy is to take what is needed for expenses.
Bob

User avatar
Peter Foley
Posts: 4619
Joined: Fri Nov 23, 2007 10:34 am
Location: Lake Wobegon

Re: Retiree Accumulation/Withdrawal Phase -- How many funds do you have? Allocation? Withdrawal strategy?

Post by Peter Foley » Thu Feb 02, 2017 11:44 pm

Like livesoft we have a number of different retirement accounts in addition to a taxable account. Not all of our preferred options are available in all accounts.

1. Withdrawal phase 4.5 years.

2. 6 funds in all. About a 50/50 AA with 10% of stocks in international

3.Total Stock market
S&P 500 Index (Would replace with total stock market if it were available)
Total International
Total Bond
TIPS (We also hold some I-bonds but this is not a "fund")
Stable Value fund

4. Delaying SS until age 70 (or close to it). Doing annual Roth conversions and very modest withdrawals from TIRA. Spending primarily from taxable with the actual mix based on staying just over the top of the 15% tax bracket. Withdrawal rate pre SS benefits is about 2%. (Note - this strategy will change slightly starting this year after having run a number of Roth conversion scenarios. Will accelerate the Roth conversion process for 2 years into the middle of the 25% tax bracket and then revert back to former strategy.)

Tom1320
Posts: 27
Joined: Wed Feb 01, 2017 9:23 am
Location: lost in the Carolina foothills

Re: Retiree Accumulation/Withdrawal Phase -- How many funds do you have? Allocation? Withdrawal strategy?

Post by Tom1320 » Fri Feb 03, 2017 8:55 am

1.Withdrawal Phase (how long into retirement)? Week 1

2. Number of funds? Allocation? Other? Eight
US stock
10% VTSAX total market
10% VSIAX small value

Intl stock
5% VTIAX total market
5% BDOIX total market
10% VEMAX emerging market

US bond
10% VBTLX total bond
40% VFIUX intermediate treasury

Cash
10% Vanguard MM and local bank

3. Optional. . . (what funds?) see above
"And this, too, shall pass away." How much it expresses! How chastening in the hour of pride! How consoling in the depths of affliction! - Our 16th President

retire57
Posts: 376
Joined: Fri Oct 28, 2016 3:03 pm

Re: Retiree Accumulation/Withdrawal Phase -- How many funds do you have? Allocation? Withdrawal strategy?

Post by retire57 » Fri Feb 03, 2017 9:23 am

1 year into retirement.

50/50 stocks/bonds. 70/30 US/International stocks

6 funds total

Current withdrawal rate 1% from taxable investments. Other living expenses covered by 2 pensions.
Last edited by retire57 on Fri Feb 03, 2017 9:35 am, edited 1 time in total.

User avatar
Taylor Larimore
Advisory Board
Posts: 27627
Joined: Tue Feb 27, 2007 8:09 pm
Location: Miami FL

My portfolio

Post by Taylor Larimore » Fri Feb 03, 2017 9:32 am

Sandtrap:

I own (age 93) three Vanguard funds: S&P 500 Index (45%) and Tax-Managed Small-Cap (20%) in taxable (both with large capital-gains), plus 35% Total Bond Market in my IRA.

If I could start over I would own the slightly different Three-Fund Portfolio.

Best wishes.
Taylor
"Simplicity is the master key to financial success." -- Jack Bogle

User avatar
midareff
Posts: 5854
Joined: Mon Nov 29, 2010 10:43 am
Location: Biscayne Bay, South Florida

Re: Retiree Accumulation/Withdrawal Phase -- How many funds do you have? Allocation? Withdrawal strategy?

Post by midareff » Fri Feb 03, 2017 9:45 am

duplicate post deleted..
Last edited by midareff on Fri Feb 03, 2017 9:47 am, edited 1 time in total.

User avatar
midareff
Posts: 5854
Joined: Mon Nov 29, 2010 10:43 am
Location: Biscayne Bay, South Florida

Re: Retiree Accumulation/Withdrawal Phase -- How many funds do you have? Allocation? Withdrawal strategy?

Post by midareff » Fri Feb 03, 2017 9:46 am

midareff wrote:
Sandtrap wrote:A thread on "How Many Funds Do You Have In Your Portfolio" in the context of where you are in the retiree "Withdrawal Phase" might help others.
Retiree or near Retiree.

0. Accumulation phase also welcome.

1.Withdrawal Phase (how long into retirement)? Starting year 6.

2. Number of funds? Allocation? Other? Three fund accounts+bank cash.. IRA, Roth and taxable. 43/53/4 equities/bonds/bank cash.

3. Optional. . . (what funds?) Taxable - Total US, Total International, IT Tax-Ex, LT Tax-Ex, IRA - REITs, ST Corp Bond Index, IT Corp Bond Index, HY, Healthcare, Roth- Healthcare.

4. Optional. . . (withdrawal strategy?) RMD starts next year .. cola'd pension and SS pays all the bills. Portfolio is for travel and luxuries and may increase to 4.5%- 5% later this year. Traveling lots while I am still able, which won't go on forever.

nanosour
Posts: 97
Joined: Tue May 28, 2013 9:21 am

Re: Retiree Accumulation/Withdrawal Phase -- How many funds do you have? Allocation? Withdrawal strategy?

Post by nanosour » Fri Feb 03, 2017 10:10 am

I go by the KISS principle.

1. 3.5 years into early retirement

2. 55/35/10 AA

3. VG 3-fund portfolio

4. Start with 2 years expenses and replenish annually. Provides me with a job search buffer should I ever feel the need to go back to work.

User avatar
Sandtrap
Posts: 5472
Joined: Sat Nov 26, 2016 6:32 pm
Location: Hawaii😀 Northern AZ.😳 Retired.

Re: Retiree Accumulation/Withdrawal Phase -- How many funds do you have? Allocation? Withdrawal strategy?

Post by Sandtrap » Fri Feb 03, 2017 12:09 pm

midareff wrote:
midareff wrote:
Sandtrap wrote:A thread on "How Many Funds Do You Have In Your Portfolio" in the context of where you are in the retiree "Withdrawal Phase" might help others.
Retiree or near Retiree.

0. Accumulation phase also welcome.

1.Withdrawal Phase (how long into retirement)? Starting year 6.

2. Number of funds? Allocation? Other? Three fund accounts+bank cash.. IRA, Roth and taxable. 43/53/4 equities/bonds/bank cash.

3. Optional. . . (what funds?) Taxable - Total US, Total International, IT Tax-Ex, LT Tax-Ex, IRA - REITs, ST Corp Bond Index, IT Corp Bond Index, HY, Healthcare, Roth- Healthcare.

4. Optional. . . (withdrawal strategy?) RMD starts next year .. cola'd pension and SS pays all the bills. Portfolio is for travel and luxuries and may increase to 4.5%- 5% later this year. Traveling lots while I am still able, which won't go on forever.
Sounds like you've got a good plan coming together.
For total allocation, did you subscribe to the "age in bonds" theory/rule?
Ditto on the "while still able". . . . The knees, the spine, the . . . .
Thanks for sharing,
j

User avatar
Sandtrap
Posts: 5472
Joined: Sat Nov 26, 2016 6:32 pm
Location: Hawaii😀 Northern AZ.😳 Retired.

Re: My portfolio

Post by Sandtrap » Fri Feb 03, 2017 12:14 pm

Taylor Larimore wrote:Sandtrap:

I own (age 93) three Vanguard funds: S&P 500 Index (45%) and Tax-Managed Small-Cap (20%) in taxable (both with large capital-gains), plus 35% Total Bond Market in my IRA.

If I could start over I would own the slightly different Three-Fund Portfolio.

Best wishes.
Taylor
Thanks, "Taylor"
"Age in Bonds"?
Given that you might have preferred to start with the Three Fund Portfolio, why would or wasn't it feasible to change it to that midstream?
IE: if someone were vested in Wellington/Wellesley or other . . . and at some point changed to a Three Fund. Not wise?
jim
Last edited by Sandtrap on Fri Feb 03, 2017 12:17 pm, edited 1 time in total.

btenny
Posts: 4623
Joined: Sun Oct 07, 2007 6:47 pm

Re: Retiree Accumulation/Withdrawal Phase -- How many funds do you have? Allocation? Withdrawal strategy?

Post by btenny » Fri Feb 03, 2017 12:15 pm

17 years into retirement. I have a maximum diversification slice and dice portfolio and 11 fund types spread over 5 different accounts. I started this setup when I first retired in 2002. I was 50/50 stocks/bonds at that time. Now I am 37/63. I have US large and small cap value stocks, international, reit and some oil stocks. I balance each of my individual accounts to my asset allocation. So each single account is about 35/65. I use short and intermediate muni funds in taxable and short and intermediate investment grade in IRA and Roths.

Good Luck.

User avatar
digarei
Posts: 792
Joined: Sat Jul 05, 2014 1:41 am
Location: Sacramento
Contact:

Re: Retiree Accumulation/Withdrawal Phase -- How many funds do you have? Allocation? Withdrawal strategy?

Post by digarei » Fri Feb 03, 2017 12:26 pm

Accumulation phase ~ 1 year + 5 months into retirement

27 funds in just 3 accounts:

Vanguard Roth IRA
Vanguard taxable
CITs in 401(k)

Almost all equities are in indexed funds.

Allocation: 80 / 20 stocks / bonds

International stocks 33% of stocks
International bonds 20% of bonds

Tilts to Value, Small, Emerging Mkts, REITs
livesoft wrote:I believe in having a small-cap and value tilted portfolio. There are many threads and discussions on bogleheads.org which show that a small-cap and value tilted portfolio is the one to have and better than a so-called 3-fund portfolio.
I've read many of those threads, at least those posted in the last two years. As a result, I'm not sure I believe any more. However, there is no remorse. The only worse thing than maintaining an allocation you think is a mistake is to keep changing it around over the years, reacting to new arguments from one side or another. I'd probably be a 4-funder if I was starting again.

Withdrawal strategy:

Dunno. I may decide to forego this part. Let the heirs sort it out.
Connect with Bogleheads in Northern California! Click the link under my user info/avatar.

User avatar
Sandtrap
Posts: 5472
Joined: Sat Nov 26, 2016 6:32 pm
Location: Hawaii😀 Northern AZ.😳 Retired.

Re: Retiree Accumulation/Withdrawal Phase -- How many funds do you have? Allocation? Withdrawal strategy?

Post by Sandtrap » Fri Feb 03, 2017 12:28 pm

btenny wrote:17 years into retirement. I have a maximum diversification slice and dice portfolio and 11 fund types spread over 5 different accounts. I started this setup when I first retired in 2002. I was 50/50 stocks/bonds at that time. Now I am 37/63. I have US large and small cap value stocks, international, reit and some oil stocks. I balance each of my individual accounts to my asset allocation. So each single account is about 35/65. I use short and intermediate muni funds in taxable and short and intermediate investment grade in IRA and Roths.

Good Luck.
Thanks, "btenny".
I have 8 funds in 2 accounts and can't decide whether to maintain the 50/50 across the board or within each account as you do. Thoughts?
Did you consider or have any "balanced funds" IE: Vanguard Balanced Index or Wellesley, etc.?
j

User avatar
Sandtrap
Posts: 5472
Joined: Sat Nov 26, 2016 6:32 pm
Location: Hawaii😀 Northern AZ.😳 Retired.

Re: Retiree Accumulation/Withdrawal Phase -- How many funds do you have? Allocation? Withdrawal strategy?

Post by Sandtrap » Fri Feb 03, 2017 12:39 pm

blueblock wrote:1.Withdrawal Phase (how long into retirement)?
Approaching two years

2. Number of funds? Allocation? Other?
Total Bond Fund (45%), Total US Stock (45%), Total International (10%)

3. Optional. . . (what funds?)
Taxable and Roth are all in sector ETFs (aka tilts)—12% of overall portfolio

4. Optional. . . (withdrawal strategy?)
2017 living expenses in checking
2018 living expenses in savings
2019 living expenses in CD in IRA
Thanks, "blueblock" for sharing.
#4 is what I'm trying to figure out right now. Tiers?
I don't have a pension income stream so those 3 years set aside would be funded 100% up front.
Do you use laddered CD's, T-bills/TNotes/etc(not funds). spread over those 3 years?
Do they provide enough inflation protection in that structure?
Did you consider TIPS funds? Why/why not?
Appreciate the help.
j

livesoft
Posts: 62977
Joined: Thu Mar 01, 2007 8:00 pm

Re: Retiree Accumulation/Withdrawal Phase -- How many funds do you have? Allocation? Withdrawal strategy?

Post by livesoft » Fri Feb 03, 2017 12:41 pm

digarei wrote:
livesoft wrote:I believe in having a small-cap and value tilted portfolio. There are many threads and discussions on bogleheads.org which show that a small-cap and value tilted portfolio is the one to have and better than a so-called 3-fund portfolio.
I've read many of those threads, at least those posted in the last two years. As a result, I'm not sure I believe any more. However, there is no remorse. The only worse thing than maintaining an allocation you think is a mistake is to keep changing it around over the years, reacting to new arguments from one side or another. I'd probably be a 4-funder if I was starting again.
I don't have to believe anything that others write because I have personal experience.

Besides, I have a so-called 3-fund portfolio plus a couple more funds to give the tilts I want. All I need to know is that the 3-fund part of my portfolio is doing the 3-fund thing and that the added funds are doing better than the total US stock market fund and the total international stock market fund. But I go along with the idea that these added funds are riskier than the broad total market funds.
Wiki This signature message sponsored by sscritic: Learn to fish.

rixer
Posts: 618
Joined: Tue Sep 11, 2012 4:18 pm

Re: Retiree Accumulation/Withdrawal Phase -- How many funds do you have? Allocation? Withdrawal strategy?

Post by rixer » Fri Feb 03, 2017 12:45 pm

Withdrawal phase. Retired 4 years.

Lifestrategy Conservative Growth Fund ( 40-60) in three accounts. Her ira, my ira and a taxable.

3 years expenses in CD's that I roll over.

Wife draws early SS, I'm drawing Spousal, I'm 68.6 yo, claiming my own SS next month.

No pension.

Just started with first withdrawal from portfolio. Will take 4.5% the next 5 years then evaluate.

User avatar
digarei
Posts: 792
Joined: Sat Jul 05, 2014 1:41 am
Location: Sacramento
Contact:

Re: Retiree Accumulation/Withdrawal Phase -- How many funds do you have? Allocation? Withdrawal strategy?

Post by digarei » Fri Feb 03, 2017 12:49 pm

livesoft wrote:
digarei wrote:
livesoft wrote:I believe in having a small-cap and value tilted portfolio. There are many threads and discussions on bogleheads.org which show that a small-cap and value tilted portfolio is the one to have and better than a so-called 3-fund portfolio.
I've read many of those threads, at least those posted in the last two years. As a result, I'm not sure I believe any more. However, there is no remorse. The only worse thing than maintaining an allocation you think is a mistake is to keep changing it around over the years, reacting to new arguments from one side or another. I'd probably be a 4-funder if I was starting again.
I don't have to believe anything that others write because I have personal experience.

Besides, I have a so-called 3-fund portfolio plus a couple more funds to give the tilts I want. All I need to know is that the 3-fund part of my portfolio is doing the 3-fund thing and that the added funds are doing better than the total US stock market fund and the total international stock market fund. But I go along with the idea that these added funds are riskier than the broad total market funds.
This seems uncharacteristically vague but perhaps I'm not fully understanding your point. Are you saying that over some period of time that small and value have added to your returns and you conclude from this that a tilted portfolio is the "one to have?"
Connect with Bogleheads in Northern California! Click the link under my user info/avatar.

livesoft
Posts: 62977
Joined: Thu Mar 01, 2007 8:00 pm

Re: Retiree Accumulation/Withdrawal Phase -- How many funds do you have? Allocation? Withdrawal strategy?

Post by livesoft » Fri Feb 03, 2017 1:15 pm

digarei wrote:Are you saying that over some period of time that small and value have added to your returns and you conclude from this that a tilted portfolio is the "one to have?"
Yes, it only takes one or two great years to overcome many less great years. For instance, in 2016, total US stock market returned 12.7%, but all my US SCV holdings returned 28%. But my records go back longer than one year.
Wiki This signature message sponsored by sscritic: Learn to fish.

btenny
Posts: 4623
Joined: Sun Oct 07, 2007 6:47 pm

Re: Retiree Accumulation/Withdrawal Phase -- How many funds do you have? Allocation? Withdrawal strategy?

Post by btenny » Fri Feb 03, 2017 1:16 pm

Sand.

I do not try to be exact with rebalancing. Close is good enough most years and I try not to do anything. But when needed I rebalanced by selling some selling stock funds or muni bond funds. This year I had to actually rebalance and buy and sell stocks and bonds to rebalance. When I rebalance I put aside 1-2 years of cash for spending. I have no separate emergency fund. I have a allocation to short term muni and short term investment grade instead.

I am a old fashioned guy and set up my asset allocation for lots of diversification with no single fund over 10% of my assets. I have both dividend stock funds and balanced funds and small cap funds plus some reit and international funds, so a lot of funds. I also own XOM stock that I count as a commodity.

Good Luck.

AlwaysaQ
Posts: 491
Joined: Fri Apr 13, 2007 7:37 am

Re: Retiree Accumulation/Withdrawal Phase -- How many funds do you have? Allocation? Withdrawal strategy?

Post by AlwaysaQ » Fri Feb 03, 2017 1:36 pm

Withdrawal phase
Beginning 22nd year of retirement

8 mutual funds at 2 investment houses; 6 index and 2 actively managed

32% equities, 31% individual TIPS, 17% bonds and bond funds, 20% cash and CDs

Besides interest, dividends and capital gains from taxable accounts I have a pension, social security, a small annuity, a small HRA, and MRD withdrawal; usually have some funds to reinvest.

I have 3 groups of individual TIPS that mature in the next 17 months. That should fund 5 years of MRDs.

User avatar
Sandtrap
Posts: 5472
Joined: Sat Nov 26, 2016 6:32 pm
Location: Hawaii😀 Northern AZ.😳 Retired.

Re: Retiree Accumulation/Withdrawal Phase -- How many funds do you have? Allocation? Withdrawal strategy?

Post by Sandtrap » Fri Feb 03, 2017 2:13 pm

rixer wrote:Withdrawal phase. Retired 4 years.

Lifestrategy Conservative Growth Fund ( 40-60) in three accounts. Her ira, my ira and a taxable.

3 years expenses in CD's that I roll over.

Wife draws early SS, I'm drawing Spousal, I'm 68.6 yo, claiming my own SS next month.

No pension.

Just started with first withdrawal from portfolio. Will take 4.5% the next 5 years then evaluate.
Thanks, "rixer".
I'm where you were 4 years ago and . . . it is spooky :shock:
Also looking at how to Tier 3 years expenses/income.
So you're doing your own CD ladder? Is that for a full year's expense for 3 years?
How did you decide for early SS or when to claim SS ? (not till 70?)
Lifestrategy Conservative Growth Fund vs Target Retirement, etc. Why did you decide to use that particular fund?
thanks for the help,
j

User avatar
Taylor Larimore
Advisory Board
Posts: 27627
Joined: Tue Feb 27, 2007 8:09 pm
Location: Miami FL

Answer to question.

Post by Taylor Larimore » Fri Feb 03, 2017 2:18 pm

Sandtrap wrote:
Taylor Larimore wrote:Sandtrap:

I own (age 93) three Vanguard funds: S&P 500 Index (45%) and Tax-Managed Small-Cap (20%) in my taxable account (both with large capital-gains), plus (35%) Total Bond Market in my IRA.

If I could start over I would own the slightly different Three-Fund Portfolio.

Best wishes.
Taylor
Thanks, "Taylor"
"Age in Bonds"?

Given that you might have preferred to start with the Three Fund Portfolio, why would or wasn't it feasible to change it to that midstream?

IE: if someone were vested in Wellington/Wellesley or other . . . and at some point changed to a Three Fund. Not wise?
jim
Jim:

My answers to your questions:
Age in bonds?
My bond allocation is what I cannot afford to lose (35%).
Given that you might have preferred to start with the Three Fund Portfolio, why would or wasn't it feasible to change it to that midstream?
When we moved our securities to Vanguard in 1986, we were in an a relatively high income-tax bracket. I (mistakenly) believed that Tax-Managed Growth and Income and Tax-Managed Small-Cap funds were more tax-efficient than Total Stock Market Index Fund. These two taxable funds of mine have accumulated large capital-gains which will trigger significant taxes if I were to exchange into my preferred Total Stock Market Index Fund.

Tax-Managed Growth and Income Fund was merged into Vanguard S&P 500 Index Fund in 2014 which is what I hold today.

Lesson learned: When starting out, it is very important in taxable accounts to hold only low-cost, tax-efficient funds that can be held 'forever' (like Total Stock Market and Total International).
if someone were vested in Wellington/Wellesley or other . . . and at some point changed to a Three Fund. Not wise?
Assuming Wellington and Wellesley contain significant capital-gains, and the investor's tax-bracket is over 15%, you are right "Not wise unless you have offsetting capital losses."

Best wishes.
Taylor
"Simplicity is the master key to financial success." -- Jack Bogle

User avatar
Sandtrap
Posts: 5472
Joined: Sat Nov 26, 2016 6:32 pm
Location: Hawaii😀 Northern AZ.😳 Retired.

Re: Answer to question.

Post by Sandtrap » Fri Feb 03, 2017 2:28 pm

Taylor Larimore wrote:. . . . . .
Assuming Wellington and Wellesley contain significant capital-gains, and the investor's tax-bracket is over 15%, you are right "Not wise."

Best wishes.
Taylor
Thanks Taylor,
I did not consider that. Estate planning is integral to fund decisions that I make now.

rixer
Posts: 618
Joined: Tue Sep 11, 2012 4:18 pm

Re: Retiree Accumulation/Withdrawal Phase -- How many funds do you have? Allocation? Withdrawal strategy?

Post by rixer » Fri Feb 03, 2017 2:52 pm

Sandtrap wrote:
rixer wrote:Withdrawal phase. Retired 4 years.

Lifestrategy Conservative Growth Fund ( 40-60) in three accounts. Her ira, my ira and a taxable.

3 years expenses in CD's that I roll over.

Wife draws early SS, I'm drawing Spousal, I'm 68.6 yo, claiming my own SS next month.

No pension.

Just started with first withdrawal from portfolio. Will take 4.5% the next 5 years then evaluate.
Thanks, "rixer".
I'm where you were 4 years ago and . . . it is spooky :shock:
Also looking at how to Tier 3 years expenses/income.
So you're doing your own CD ladder? Is that for a full year's expense for 3 years?
How did you decide for early SS or when to claim SS ? (not till 70?)
Lifestrategy Conservative Growth Fund vs Target Retirement, etc. Why did you decide to use that particular fund?
thanks for the help,
j
Hi Sandtrap,
Yes, it's spooky. There's so many different ways to choose from and what's right for you?
Anyhow, to answer your questions, yes, I roll over my own CD ladder at my broker, not optimum but it's simple to do from home. I haven't used them, I keep them for if my fund drops so far, I don't want to sell for expenses. I have three CD's but they won't fund all my expenses. I figure if things got tough, we could get by on our SS, a small amount of dividends from the taxable account and our CD's for three years. Anyway, that's the plan.

The wife started SS when she retired. I was 66 so I took Spousal Benefit at that time. This is the first year I'm drawing from our portfolio and I decided I will now file for my own SS. I'm so glad I waited because the benefit is much better but it's a big raise in income so I'm going to take it now at 68.6 yo.

I chose Lifestrategy not too long ago. The wife has no desire to get involved and personally, it's so much easier to stay the course with a balanced fund. I chose LS over TR because I do not plan on changing my AA from the 40-60 that it is. TR goes down to 30-70. It also takes the emotional stress out of it for me.
This isn't the most tax efficient fund for taxable but for us, in our situation it's okay.

I don't know if that helps but I think it's a pretty conservative plan that's easy to follow. We're rolling with it.

User avatar
blueblock
Posts: 865
Joined: Sun Oct 19, 2014 6:06 pm
Location: Wisconsin

Re: Retiree Accumulation/Withdrawal Phase -- How many funds do you have? Allocation? Withdrawal strategy?

Post by blueblock » Fri Feb 03, 2017 2:54 pm

Sandtrap wrote:
blueblock wrote:1.Withdrawal Phase (how long into retirement)?
Approaching two years

2. Number of funds? Allocation? Other?
Total Bond Fund (45%), Total US Stock (45%), Total International (10%)

3. Optional. . . (what funds?)
Taxable and Roth are all in sector ETFs (aka tilts)—12% of overall portfolio

4. Optional. . . (withdrawal strategy?)
2017 living expenses in checking
2018 living expenses in savings
2019 living expenses in CD in IRA
Thanks, "blueblock" for sharing.
#4 is what I'm trying to figure out right now. Tiers?
I don't have a pension income stream so those 3 years set aside would be funded 100% up front.
Do you use laddered CD's, T-bills/TNotes/etc(not funds). spread over those 3 years?
Do they provide enough inflation protection in that structure?
Did you consider TIPS funds? Why/why not?
Appreciate the help.
j
Yes, in 2015 I funded two years up front and, when I transferred my 401K to a Rollover IRA, I kept aside the third year's cash before re-investing the rest. So now, in any given year, I sell one year's living expenses in the IRA (while re-balancing) and put that in a CD until the following year, at which time it gets withdrawn/transferred to savings. Rinse and repeat.

The idea is to have a 2-3 year "buffer" at any given time, so that I'm not forced to sell in a downturn if I don't want to. I can wait it out or I can take from taxable or Roth. I like options almost as much as I like liquidity. :happy

No, I don't use anything like T-bills, TIPS, etc. I don't care about inflation protection for such a short period with what is not all that much money in the grand scheme of things.

dcabler
Posts: 693
Joined: Wed Feb 19, 2014 11:30 am

Re: Retiree Accumulation/Withdrawal Phase -- How many funds do you have? Allocation? Withdrawal strategy?

Post by dcabler » Fri Feb 03, 2017 3:08 pm

- Accumulation
- Lots of funds, but not that many funds in each account. Accounts include My Rollover IRA, My wife's rollover IRA, my current employer's 401K, a deferred compensation plan currently in payout mode with 5 more years to go, a taxable account at Fidelity and a taxable account at Vanguard.
- Allocation for taxable accounts is roughly 55% stock fund heavily tilted toward mid cap blend/mid cap value, 32% Intermediate treasury bond funds, 13% TIPs
- Allocation for tax deferred accounts is roughly 65% stock heavily tilted towards mid cap blend/mid cap value, 25% Intermediate treasury bond funds, 10% TIPs. This is gliding to the same place as the taxable accounts and will be there in a few years.

Once I hit retirement I expect
Withdrawal Method to be something close to VPW
Will decide on the allocation. Might be what I currently have in my taxable accounts or it might be something closer to the "Larry Portfolio". Still have a few years to decide....

User avatar
Sandtrap
Posts: 5472
Joined: Sat Nov 26, 2016 6:32 pm
Location: Hawaii😀 Northern AZ.😳 Retired.

Re: Retiree Accumulation/Withdrawal Phase -- How many funds do you have? Allocation? Withdrawal strategy?

Post by Sandtrap » Fri Feb 03, 2017 3:51 pm

rixer wrote: . . . . . .
I chose Lifestrategy not too long ago. The wife has no desire to get involved and personally, it's so much easier to stay the course with a balanced fund. I chose LS over TR because I do not plan on changing my AA from the 40-60 that it is. TR goes down to 30-70. It also takes the emotional stress out of it for me.
This isn't the most tax efficient fund for taxable but for us, in our situation it's okay.

I don't know if that helps but I think it's a pretty conservative plan that's easy to follow. We're rolling with it.
Thanks a lot, "rixer". Similar situation. I'm not sure whether LS, TR, or Wellesley with added funds to reach target "weighting", etc. I'm learning that the "sleep factor" is priceless. And, I can see how the balanced funds can make it easier to "stay the course" as one can't see the little pieces inside moving up and down by the day, week, month, etc.
Thanks again,
j

User avatar
midareff
Posts: 5854
Joined: Mon Nov 29, 2010 10:43 am
Location: Biscayne Bay, South Florida

Re: Retiree Accumulation/Withdrawal Phase -- How many funds do you have? Allocation? Withdrawal strategy?

Post by midareff » Fri Feb 03, 2017 6:46 pm

Sandtrap wrote:
midareff wrote:
midareff wrote:
Sandtrap wrote:A thread on "How Many Funds Do You Have In Your Portfolio" in the context of where you are in the retiree "Withdrawal Phase" might help others.
Retiree or near Retiree.

0. Accumulation phase also welcome.

1.Withdrawal Phase (how long into retirement)? Starting year 6.

2. Number of funds? Allocation? Other? Three fund accounts+bank cash.. IRA, Roth and taxable. 43/53/4 equities/bonds/bank cash.

3. Optional. . . (what funds?) Taxable - Total US, Total International, IT Tax-Ex, LT Tax-Ex, IRA - REITs, ST Corp Bond Index, IT Corp Bond Index, HY, Healthcare, Roth- Healthcare.

4. Optional. . . (withdrawal strategy?) RMD starts next year .. cola'd pension and SS pays all the bills. Portfolio is for travel and luxuries and may increase to 4.5%- 5% later this year. Traveling lots while I am still able, which won't go on forever.
Sounds like you've got a good plan coming together.
For total allocation, did you subscribe to the "age in bonds" theory/rule?
Ditto on the "while still able". . . . The knees, the spine, the . . . .
Thanks for sharing,
j
As the market ran up over the last few years I dropped my AA 48/48/4 to 40/56/4. The continued run has me back to 43/53/4 and I am comfortable there.I'm 69 so I'm not age in bonds but much more Dr. Bernstein's if you have won there is no need to keep playing.

The Wizard
Posts: 12449
Joined: Tue Mar 23, 2010 1:45 pm
Location: Reading, MA

Re: Retiree Accumulation/Withdrawal Phase -- How many funds do you have? Allocation? Withdrawal strategy?

Post by The Wizard » Fri Feb 03, 2017 6:59 pm

Sandtrap wrote:A thread on "How Many Funds Do You Have In Your Portfolio" in the context of where you are in the retiree "Withdrawal Phase" might help others.

1.Withdrawal Phase (how long into retirement)?
I'm 4 years in.

2. Number of funds? Allocation? Or AA ("age in bonds", 50/50, etc, Other?)
I have seven funds in TIAA and four in Vanguard.

3. Optional. . . (what funds?)
...

4. Optional. . . (withdrawal strategy?)
I'm still withdrawing from portfolio in lieu of SS which I'll claim in full in 2020.

5a. Pension/external income stream vs only Investment Portfolio as primary or supplemental retirement income stream?
My annuity + div spousal SS makes up 70% of my retirement income.

5b. There seems to be different strategies between those with moderate/substantial pensions vs those without a pension. If so, the Investment Portfolio has to fullfill a greater or lesser role in the areas of Inflation Protection, Growth of Principal, and either partial or total Income Stream in retirement. How have you approached this?
I have no pension, but annuitized instead...
Attempted new signature...

btenny
Posts: 4623
Joined: Sun Oct 07, 2007 6:47 pm

Re: Retiree Accumulation/Withdrawal Phase -- How many funds do you have? Allocation? Withdrawal strategy?

Post by btenny » Fri Feb 03, 2017 7:07 pm

When I was accumulating I was in a high tax bracket and mostly did stock investing in tax free accounts at Bigcorp. They did all the stock selection and asset allocation while I worked. I just put in $$$. I separately held muni bonds as emergency funds and some single stocks in my taxable accounts. I also did personal real estate as taxable investments. When I retired I sold the real estate and bought more muni funds and some stock funds in taxable. For simplicity I did 50/50 in my taxable account and let my IRA and SS grow. I rolled over my Bigcorp 401K to a self directed IRA at retirement and made it 50/50 as well. I selected a value slice and dice approach with investment grade and muni and TIP bonds at that time. I have had good results. I also own two mixer funds (Wellesley and TRP) in my IRA, again not too much in each but enough. In 17 years of retirement I have let the AA go down to 37/63 by spending the taxable funds and rebalancing occasionally..

I have thought about simplifying to a three fund approach but that means concentrated $$$ in a single fund of 20% or more. But my wife and I are not comfortable in having that much $$ in a single fund. Similarly I am not happy with concentrating my bond allocation to Total Bond fund and its' mix of bonds. It has too much MBS and government tweaked treasuries for my taste. So we stay with the slice and dice and a mix of bond types. No more than 12% in any single fund.

Good Luck.

User avatar
tennisplyr
Posts: 1902
Joined: Tue Jan 28, 2014 1:53 pm
Location: Sarasota, FL

Re: Retiree Accumulation/Withdrawal Phase -- How many funds do you have? Allocation? Withdrawal strategy?

Post by tennisplyr » Fri Feb 03, 2017 7:09 pm

I'm retired, 6 years and have many funds @50/50 allocation--80/20 domestic/international. Withdraw as needed, currently collecting SS which started at 62 (am 67).
Those who move forward with a happy spirit will find that things always work out.

Case59
Posts: 106
Joined: Fri Dec 30, 2011 12:31 pm

Re: Retiree Accumulation/Withdrawal Phase -- How many funds do you have? Allocation? Withdrawal strategy?

Post by Case59 » Fri Feb 03, 2017 9:05 pm

Age 64, retired five years: currently 63% stocks, 28% bonds, 9% REIT ETF (VNQ, in IRA), plus about a year's worth of expenses in ST/savings accounts. We largely live on dividends, year end capital gains, and SS.

Major stock funds we own are Vanguard Equity Income, Total Stock, Total International stock.

Bonds are largely in LT and IT tax-exempt funds.

Under the influence of this forum, particularly Taylor and Nisiprius, we've worked to simplify things over the last few years.
"Most quotations on the internet are incorrect."-Mark Twain

Post Reply