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Asset Allocation of retirees and near retirees of forum readers.

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  • Asset Allocation of retirees and near retirees of forum readers.

    I thought it would be interesting if those who are in retirement or close to it would post their asset allocations in a dedicated thread. Also folks could post their planned asset allocation for retirement and how they plan to get to it.
    My allocation is 70% equity/ 26% bonds/4% cash/short-term. No crypto or investment real estate. Some would say too aggressive at 64. No debt of any kind.

  • #2
    I am 1-3 years out at age 61. Currently 64/29/7 stocks/bonds & cash/real estate. No other alternatives. I would also add that asset location and situation are relevant considerations. For example, in terms of location, most of my bonds are in 457 accounts that I plan to spend first in retirement, and I consider that to mitigate my SORR. Regarding situation: my real estate is direct owned and debt free so all free cash flow. I actually expect to have a natural rising equity glide path as I spend down my bonds. My open question is whether or not to convert my various real estate to a retirement home. It may be a relevant consideration that I have a pension with a cash value of 1.25M and that I did not include my own home in the real estate investments since our focus here i son retirement spending.

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    • #3
      Star Trek Doc points out that in a VHCOLA the primary home is part of your AA. 70/25/4/1. equity/bonds/cash/ home

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      • #4
        I'm basically retired at 38, currently 95% equities/5% cash set aside for taxes in my taxable account. I do try to keep around 0.5-1% btc/eth but I rarely monitor/add to that at all. I also have a 401k in index funds and a Roth IRA that have some random stocks/cash that's much smaller so I don't really add that up in my AA.

        My goal taxable portfolio for the next 5-10 years is 50% TSLA, 33% QQQ, 16% TQQQ, 1% crypto (btc/eth). I'll then sell covered strangles on everything using margin.

        If/once TSLA doesn't meet my projections, I'll switch to 66% QQQ, 33% TQQQ, 1% crypto and still sell covered strangles on everything.

        It's very aggressive and requires managing, but I enjoy it and it's still working out well for now.

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        • #5
          Near retirement, 2022 is likely my last. Per Quicken shockingly similar allocation 71/27/2. I’ve discussed this in other threads but I don’t seek a specific AA. Instead I keep 10-12 years of expenses in bonds and will pull cash from the short-term bonds as needed to replenish my cash. I have 1% in GTBC and ETHE inside my Roth.

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          • #6
            I am retired from practice and now work in managed care. At age 56, I can see being retired from this in 3 years or 13 years or somewhere in between. My asset allocation assumes that my wife and I could both be retired tomorrow. It does not include wife's pension or vested stock grants, which have the present value of about another 8% to the portfolio.

            65/20/10/5 Stock/bond/cash/alternative

            The alternative basket includes real estate (not including residence), gold/coins, ownership in imaging centers, wine (Vinovest), and a tiny sliver of crypto
            Last edited by VagabondMD; 12-01-2021, 09:32 PM.

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            • #7
              Originally posted by VagabondMD View Post
              I am retired from practice and now work in managed care. At age 57, I can see being retired from this in 3 years or 13 years or somewhere in between. My asset allocation assumes that my wife and I could both be retired tomorrow. It does not include wife's pension or vested stock grants, which have the present value of about another 8% to the portfolio.

              65/20/10/5 Stock/bond/cash/alternative

              The alternative basket includes real estate (not including residence), gold/coins, ownership in imaging centers, wine (Vinovest), and a tiny sliver of crypto
              Do you primarily view the ownership in the imaging centers as a source of income, or capital appreciation?

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              • #8
                I primarily think of my future retirement in terms of years expenses, but will try to convert to align to others here.

                5% gold (IAU, gold fund) in taxable.
                10% cash (CD ladder)
                20% bond (BND, total bond fund) in tax deferred
                65% equities (85% total US; 15% total international) in taxable and roth.

                Plan on 85-95% equities until 5-7 years away from retirement, depending on market cycles. At this time, convert equities in 401k to hit 20% bonds.

                From 5-7 years to retirement, build or reinforce cash and gold positions, again depending on market cycles.

                Aiming for retirement at 55-60. Looking to portfolio/AA/cash to support initial years of retirement as well as 401 to Roth conversions. Goal is to make it to 62 or beyond to call on pension and SS. Have partner also with pension and SS. Targeting 100k pre tax income.

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                • #9
                  Originally posted by Larry Ragman View Post

                  Do you primarily view the ownership in the imaging centers as a source of income, or capital appreciation?
                  Good question. For my years in practice, it was an excellent source of income. Considering the total amount invested 15 years ago, I was receiving 3-4x the initial cash investment annually, from years 10-15, as business income. That is in addition to growing the practice and adding high revenue-generating professional income.

                  I am in the process of getting bought out, so now it is capital appreciation.

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                  • #10
                    We are age 64 and in our first year of full retirement.
                    Stocks/bonds/cash = 85/5/10. no alts.
                    lots of cash in the buckets.

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                    • #11
                      I am financially independent but still working. I define the type of work I enjoy and the schedule under which I work. It is a privilege for me to remain engaged and productive. So I am sort of retired, spending my time as I see fit, but not retired in the traditional sense of the word.

                      The stock/bond/cash allocation of our assets is 70/20/10. 1/3 of the stock allocation is in international.

                      We also have cash flowing real estate with equity worth a similar amount to our stock/bond/cash assets. The annual cash flow acts as a pension plan that will generate inflation protected, passive income for our lifetimes.

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                      • #12
                        So folk who have 3 years of Cash on hand with annual spends: 200k = 600k on hand

                        at 10% that means AA - so typical buckets of 75/15/10 means: 4.5M/900k/600k = 6M retirement bucket.

                        Just trying to break down in real dollars today to see where averages are. Is 200k budget reasonable for most here? That high or low?

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                        • #13
                          Originally posted by StarTrekDoc View Post
                          So folk who have 3 years of Cash on hand with annual spends: 200k = 600k on hand

                          at 10% that means AA - so typical buckets of 75/15/10 means: 4.5M/900k/600k = 6M retirement bucket.

                          Just trying to break down in real dollars today to see where averages are. Is 200k budget reasonable for most here? That high or low?
                          I consider myself to have 5 years of cash on hand, and I agree with your budget ($200k). For me, this assumes no other income. More realistically, over time, I would plan to have net $200k for spending and maybe another $100k for taxes, charity, gifts, etc.

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                          • #14
                            Still working , considering the best time to retire. We are in early 50s. Have 65/25/10. = 7.5m. This does not include practice, office building and home which are paid for. We typically spend less than 100k/yr

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                            • #15
                              Age 48.

                              Working part time.

                              2-5 years until retirement from clinical medicine?

                              AA: 75 / 22 / 3 stocks / bonds / cash

                              No alternatives, no realestate.

                              Zero debt. no mortgage etc.

                              spending < 100-120k/ year

                              Realestate seems like a good additional asset class, but I feel i am at an informational disadvantage compared to the pros.

                              Crypto would be pure speculation for me because i don’t understand it. It seems pretty complicated and i wonder how well most people who own it understand it? Maybe i am just dumb?
                              Last edited by Tangler; 12-01-2021, 04:38 PM.

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