How’s this def comp allocation setup for someone with Pension & SS?

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Topic Author
VOOme
Posts: 12
Joined: Tue Jan 23, 2024 1:18 pm

How’s this def comp allocation setup for someone with Pension & SS?

Post by VOOme »

I’ve posted before about my pension. I’m 35 and expect to take it at 55. Will also receive SS at presumably 62-65.

I’ve been in deferred comp since I started(22) and it looks like this 4% of salary (call it 100,000)

55% 500 index
20% International index
10% REIT
10% Bond fund
5% Cash fund (3.9%)

Roughly 85/15. My goal is to HOPEFULLY not touch this for as long as I can. To RMD’s godwilling.

Too risky? Not risky enough having a (almost) guaranteed pension and SS?

Thanks everyone.
‘Time is your friend, impulse is your enemy” | -Jack Bogle
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arcticpineapplecorp.
Posts: 15319
Joined: Tue Mar 06, 2012 8:22 pm

Re: How’s this def comp allocation setup for someone with Pension & SS?

Post by arcticpineapplecorp. »

VOOme wrote: Sun May 12, 2024 6:41 pm I’ve posted before about my pension. I’m 35 and expect to take it at 55. Will also receive SS at presumably 62-65.

I’ve been in deferred comp since I started(22) and it looks like this 4% of salary (call it 100,000)

55% 500 index
20% International index
10% REIT
10% Bond fund
5% Cash fund (3.9%)

Roughly 85/15. My goal is to HOPEFULLY not touch this for as long as I can. To RMD’s godwilling.

Too risky? Not risky enough having a (almost) guaranteed pension and SS?

Thanks everyone.
there's no one right answer obviously as you yourself see that one can say too risky and another can say not risky enough.

AA is based on your need, ability and willingness to take risk.

Doesn't seem like you have the need to take the risk, so some would say why bother or why take risk you don't need to (though you didn't mention if you have charitable goals or want to leave to heirs, etc. That could necessitate the need to take the risk for the sake of others).

You have the ability if your job is secure and don't need to draw on the assets until 75 (RMD age).

Do you have the willingness? If you're ok losing 43% or so in the next 50% stock market downturn:

Image

maybe you've read this before. maybe you haven't:

How much risk do you need to take: https://www.cbsnews.com/news/asset-allo ... -you-need/
How much risk do you have the ability to take: https://www.cbsnews.com/news/asset-allo ... -you-take/
How much risk do you have the willingness to take: https://www.cbsnews.com/news/asset-allo ... tolerance/
How to deal with conflicts between the need, ability and willingness to take risk: https://www.cbsnews.com/news/asset-allo ... ing-goals/

some will say :
Graham says to stay within the range of 25/75 to 75/25: We have suggested as a fundamental guiding rule that the investor should never have less than 25% or more than 75% of his funds in common stocks, with a consequent inverse range of between 75% and 25% in bonds.
what do you think?
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Topic Author
VOOme
Posts: 12
Joined: Tue Jan 23, 2024 1:18 pm

Re: How’s this def comp allocation setup for someone with Pension & SS?

Post by VOOme »

arcticpineapplecorp. wrote: Sun May 12, 2024 8:38 pm
VOOme wrote: Sun May 12, 2024 6:41 pm I’ve posted before about my pension. I’m 35 and expect to take it at 55. Will also receive SS at presumably 62-65.

I’ve been in deferred comp since I started(22) and it looks like this 4% of salary (call it 100,000)

55% 500 index
20% International index
10% REIT
10% Bond fund
5% Cash fund (3.9%)

Roughly 85/15. My goal is to HOPEFULLY not touch this for as long as I can. To RMD’s godwilling.

Too risky? Not risky enough having a (almost) guaranteed pension and SS?

Thanks everyone.
there's no one right answer obviously as you yourself see that one can say too risky and another can say not risky enough.

AA is based on your need, ability and willingness to take risk.

Doesn't seem like you have the need to take the risk, so some would say why bother or why take risk you don't need to (though you didn't mention if you have charitable goals or want to leave to heirs, etc. That could necessitate the need to take the risk for the sake of others).

You have the ability if your job is secure and don't need to draw on the assets until 75 (RMD age).

Do you have the willingness? If you're ok losing 43% or so in the next 50% stock market downturn:

Image

maybe you've read this before. maybe you haven't:

How much risk do you need to take: https://www.cbsnews.com/news/asset-allo ... -you-need/
How much risk do you have the ability to take: https://www.cbsnews.com/news/asset-allo ... -you-take/
How much risk do you have the willingness to take: https://www.cbsnews.com/news/asset-allo ... tolerance/
How to deal with conflicts between the need, ability and willingness to take risk: https://www.cbsnews.com/news/asset-allo ... ing-goals/

some will say :
Graham says to stay within the range of 25/75 to 75/25: We have suggested as a fundamental guiding rule that the investor should never have less than 25% or more than 75% of his funds in common stocks, with a consequent inverse range of between 75% and 25% in bonds.
what do you think?
I’ve settled on 15/85

My target date is 2045. I replicated Vanguards 2045 fund but continue to carry 10% REITs


55 US
20 INTL
10 REIT
15 Cash/BOND
‘Time is your friend, impulse is your enemy” | -Jack Bogle
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