ruralavalon wrote: ↑Tue Dec 15, 2020 10:58 am
Welcome to the forum
dogagility wrote: ↑Tue Dec 15, 2020 6:08 am
You will get much better input on your questions if you start a new thread and use the forum's template for asking portfolio questions.
Thanks. Yeah I took your advice and started a new thread in the format as best I could approximate by the guidelines you linked. Eager to hear peoples opinions.
Having seen and even compared to most 50 + year olds I’m conservative.
Probably should be more aggressive with my AA to seek better returns.
Last edited by Mr F on Tue Dec 15, 2020 11:30 am, edited 2 times in total.
When you're chewing on life's gristle. Don't grumble, give a whistle. And this'll help things turn out for the best. Always look on the bright side of life.
50 hoping to work PT starting 2021- yay to semi retirement!
70/30 with about 25% international stock, not counting e fund/cash/ibonds in AA
have rental income - 5 years mortgage payments left!
will have small/medium pension
funds in 401k, RothIRA and taxable account
debating going to 65-60/35-40 when fully retired (date is fluid, working for the free healthcare)
rental income and pension should cover ordinary monthly expenses after property is paid off.
35. Wife is 36. 70/30. I had been strongly age-in-bonds until the last few years. The Covid crash hurt, but I stayed the course. Now that I know my risk tolerance by experience, will stay 70/30 fixed for at least five years, probably ten. I don’t foresee going below 50/50 in retirement.
Stock: 13.5% each: US large blend, large value, small blend, small value; 7.2% each: int'l large blend, large value, small blend, small value, EM; 10%: REET / Bond: 50% TSP G, 50% TSP F.
DH 77, DW 71. AA 60/40 mostly VTI/VBTLX. We are using Edward Jones as our emergency fund. I bought Nextera Energy 20 years ago (initial investment of $26,000) along with the usual high ER funds. When I retired 7 years ago I systematically sold my EJ funds carefully avoiding capital gains taxes. The only remaining EJ investments are Growth Fund of America and NEE. Each year I consult with my CPA to determine how much EJ I can sell before incurring a tax problem. Even if I can't sell the remaining EJ investments my children will inherit the remainder on a stepped up basis. Also, I transferred over $200,000 of VTI to Merrill Edge to obtain a $900.00 bonus. Bank of America now provided free banking for just about everything, and we receive Platinum Plus credit cards providing a huge cash back allowance. Other than that we do not have an emergency fund.
Expected Asset Allocation starting 2021 (for new money):
Fixed Income: 30% (Stable Value, Treasury Direct i bonds and EE bonds)
Equities: 30% (Domestic and International)
Speculative (think bitcoin, Tesla, etc): 5%
Real Estate: 18% (Direct or Indirect)
Balanced fund to support contingencies around Real Estate investments (just to be cautious, if we go the direct RE investment route): 17%
EF is possibly all we will have in accessible cash and I don't see us adding too much beyond 1 year of expenses.
65/67 years old. 50 stocks/ 50 bonds. Includes international mix. Both retired.
“Riches prick us with a thousand troubles in getting them, as many cares in preserving them, and yet more anxiety in spending them, and with grief in losing them.” – St. Francis of Assisi
flaccidsteele wrote: ↑Sun Dec 27, 2020 12:33 am
40s. Retired
$5.5m nw
If I had to guess my AA is
5% cash
40% stocks (US index + Berkshire Hathaway)
55% US real estate
No international
No bonds
No conventional rebalancing
That must be SIMPLICITY and total peace of mind. A growing passive income stream.
Tony
John C. Bogle: “Simplicity is the master key to financial success."
46
88/12 (primarily in aggressive target date fund; remainder in index/total market)
2021+ contributions at 75/25 (less aggressive target date fund)
Not sure yet if I will rebalance or let it sort itself out
Last edited by InvestorHowie on Sun Dec 27, 2020 11:03 am, edited 2 times in total.
Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas. --Paul Samuelson
Gee, after seeing all these high bond & cash allocations, I feel like a riverboat gambler.
Been nearly all stock throughout working career, but preparing to retire, so have built bonds/cash up since September, but having trouble convincing myself to sell any more stocks to buy bonds in this low yield environment. Or maybe it's a historically high stock market and the best possible time to sell stocks, build cash and buy bonds?
I'm 60, DW 60. Plan to retire shortly.
79% stock (some small and value tilt, 25% of stocks are Intn'l)
12% bonds
5% cash
4% rental farmland (receive rental like a 2% bond)
flaccidsteele wrote: ↑Sun Dec 27, 2020 12:33 am
40s. Retired
$5.5m nw
If I had to guess my AA is
5% cash
40% stocks (US index + Berkshire Hathaway)
55% US real estate
No international
No bonds
No conventional rebalancing
That must be SIMPLICITY and total peace of mind. A growing passive income stream.
Tony
It is
I often read posts here where people list a dozen or more funds, international, with regular rebalancing, only to get more complexity and worse performance
Bogle’s advice of simplicity is vastly underrated here
The US market always recovers. It’s never different this time. Retired in my 40s. Investing is a simple game of rinse and repeat
flaccidsteele wrote: ↑Sun Dec 27, 2020 12:33 am
40s. Retired
$5.5m nw
If I had to guess my AA is
5% cash
40% stocks (US index + Berkshire Hathaway)
55% US real estate
No international
No bonds
No conventional rebalancing
That must be SIMPLICITY and total peace of mind. A growing passive income stream.
Tony
It is
I often read posts here where people list a dozen or more funds, international, with regular rebalancing, only to get more complexity and worse performance
Bogle’s advice of simplicity is vastly underrated here
Excellent advice and investors would be to listen.
Tony
John C. Bogle: “Simplicity is the master key to financial success."
~98% FTSE Global All Cap trackers (Vanguard and HSBC - between all the fees I genuinely can’t remember which is cheaper for each savings vehicle) ~2% Cash (Emergency fund - 6 months expenses)
In my ISA, SIPP (via salary sacrifice), and taxable accounts. I have some amount in my workplace pension, which I plan to transfer.
flaccidsteele wrote: ↑Sun Dec 27, 2020 12:33 am
40s. Retired
$5.5m nw
If I had to guess my AA is
5% cash
40% stocks (US index + Berkshire Hathaway)
55% US real estate
No international
No bonds
No conventional rebalancing
That must be SIMPLICITY and total peace of mind. A growing passive income stream.
Tony
It is
I often read posts here where people list a dozen or more funds, international, with regular rebalancing, only to get more complexity and worse performance
Bogle’s advice of simplicity is vastly underrated here
Isn't dealing with real estate a lot more complicated than spending 30 minutes 2x per year rebalancing a small number of funds?
flaccidsteele wrote: ↑Sun Dec 27, 2020 12:33 am
40s. Retired
$5.5m nw
If I had to guess my AA is
5% cash
40% stocks (US index + Berkshire Hathaway)
55% US real estate
No international
No bonds
No conventional rebalancing
That must be SIMPLICITY and total peace of mind. A growing passive income stream.
Tony
It is
I often read posts here where people list a dozen or more funds, international, with regular rebalancing, only to get more complexity and worse performance
Bogle’s advice of simplicity is vastly underrated here
Isn't dealing with real estate a lot more complicated than spending 30 minutes 2x per year rebalancing a small number of funds?
I don’t rebalance so yes, the real estate, despite being managed by property management companies, requires slightly more work
Not complicated tho
I haven’t even seen many of the homes that I own, nor have I held any of the keys or met any of the tenants
The US market always recovers. It’s never different this time. Retired in my 40s. Investing is a simple game of rinse and repeat
Updated after making minor tweaks in the last few months:
I'm 59 and still working; have a present pension with medical coverage; farm income; and plan to retire from my day job in about 4 years - about when my first kid starts college.
I'm 70/29/1 (Stock/bond/cash) adjusted for future taxes. I'm emulating VTWAX (VG Total World Stock) with VTSAX and VTIAX in taxable and Roth, and all tax deferred retirement accounts are 100% total bond.
I am 41, wife 35. $3M invested, excluding equity in our home.
We are approximately 1.5% cash and rest in equity. Thinking of converting about $200k into bonds from equity and then keep contributing to equity. Or just stay the course and keep accumulating to equity.
We have approximately $598k remaining in our mortgage, but thinking about just investing more rather than paying it down since the rate is so low.
Spouse and I are both 62. Spouse collects SS disability, I don't plan on taking SS till 70, but obviously could sooner in a pinch. I still work and will collect a small pension whenever I retire (likely 3 years)--it also provides good retiree health benefits.
With those sources providing enough guaranteed income to get by, I decided to let my AA drift up from 45/55 to 65/35 over the next few years. My bond side is 1/2 bond funds and 1/2 fixed in TIAA traditional with 3% minimum interest rate. Equities are about 2 to 1 US to international.
