Backbone needed to beat inflation? What is your AA in terms of stock percentage?

[childay]

early 40s.

100% equities.

no plans to change any time soon.

Same aside from tiny i-bond portion.

[F0017S0]

Early 30’s, so 90/10 stock/bond.

[uksho]

Mid 40s, 100 percent stocks ( 99 % index)

[Tangler]

i'm FIRE and 70% equities. of the bonds, 25% is either TIPS or 6 month treasuries and the remaining 5% is long treasuries

How did you decide how much to put in tips vs treasuries? do you buy individual bonds or bond funds? what bond funds? How long are your long treasuries? Are you concerned about SORR? Inflation?
Sorry for all the questions. I am close to FIRE.

[triad]

How did you decide how much to put in tips vs treasuries? do you buy individual bonds or bond funds? what bond funds? How long are your long treasuries? Are you concerned about SORR? Inflation?
Sorry for all the questions. I am close to FIRE.

I use etfs the bonds are: xhlf schp ltpz tmf. i'm mid 40s so i'm more concerned about inflation than the average retiree and SORR is a risk for everyone. Luckily, most of my spending is discretionary so the plan is to spend more when the market is up and take fewer vacays when it isn't. I have about five years of minimum desired spending in short/intermediate bonds and an active dental license to protect against SORR

[Tangler]

I use etfs the bonds are: xhlf schp ltpz tmf. i'm mid 40s so i'm more concerned about inflation than the average retiree and SORR is a risk for everyone. Luckily, most of my spending is discretionary so the plan is to spend more when the market is up and take fewer vacays when it isn't. I have about five years of minimum desired spending in short/intermediate bonds and an active dental license to protect against SORR

I will check out those bond ETFs. I am working “part time” and building a cash bucket and those might be something to add to it. Thanks for the info!

[triad]

I will check out those bond ETFs. I am working “part time” and building a cash bucket and those might be something to add to it. Thanks for the info!

i can strongly recommend xhlf and schp as those are fantastic low cost funds.
ltpz is the only long tips etf around and has a steep expense ratio (.2). 20 year real yields are 1.7% which sounds great to me.
tmf is only if you like to gamble due to its high fees and volatility (currently down 80% from the high!). schq is a much more sensible long treasury fund

[Tangler]

i can strongly recommend xhlf and schp as those are fantastic low cost funds.
ltpz is the only long tips etf around and has a steep expense ratio (.2). 20 year real yields are 1.7% which sounds great to me.
tmf is only if you like to gamble due to its high fees and volatility (currently down 80% from the high!). schq is a much more sensible long treasury fund

I went into my vanguard brokerage and bought a little XHLF and SCHP.

I will use as part of my "cash bucket".

I want to eventually have around 500-800k in this cash bucket when I totally FIRE and I want it to contain:

30-100k of MMF and or cash for emergencies and immediate use (very liquid)

The rest (400-700k) I want in safe investments, that can be spent in the event of a market decline that coincides with a lack of income.

Currently the "part time" work is covering my living expenses and also maintaining my "human capital" = clinical skills, and keeping me feeling happy (I have found meaningful work that makes money is important for me at this stage of my life)

Not too much work (little to no difficult call......(easy call only) and lots of breaks for other activities.

So me:
Age 50. Debt zero (not even a mortgage), spending 150k (180k max if really crazy vacations etc). Stocks >5M (stock index funds and ETFs. "part time" income 200-400k, current "cash bucket" is 220-250k.

Fluid situation, but think the ground is pretty solid.

Thanks for the XHLF and SCHP idea. I will add a little to those and keep adding a little with new income and use as part of my growing SORR antidote cash bucket.

[Tangler]

Also, what are you thoughts on VTES?

https://investor.vanguard.com/investment-products/etfs/profile/vtes

I am also adding this to buy "cash bucket"

Not a ton but another bond ETF to add $ into with new income to gradually grow my taxable bond holdings.

I do not have a lot of bonds in my IRAs, because at 50, and I do not plan on using that money for >20 years.

In the long run I think stocks will beat bonds but it will be a ridiculously bumpy ride (which I will do my best to ignore and focus on other aspects of life that I can control).

News = noise.

News about short term stock movements = pointless noise, that is potentially harmful to some people (upsetting and in the worst case scenario helps encourage market timing and panic selling).

[triad]

Also, what are you thoughts on VTES?

https://investor.vanguard.com/investment-products/etfs/profile/vtes

I am also adding this to buy "cash bucket"

Not a ton but another bond ETF to add $ into with new income to gradually grow my taxable bond holdings.

I do not have a lot of bonds in my IRAs, because at 50, and I do not plan on using that money for >20 years.

In the long run I think stocks will beat bonds but it will be a ridiculously bumpy ride (which I will do my best to ignore and focus on other aspects of life that I can control).

News = noise.

News about short term stock movements = pointless noise, that is potentially harmful to some people (upsetting and in the worst case scenario helps encourage market timing and panic selling).

you're probably better off keeping all bonds in the IRA, especially while you are working. last i checked it only made sense to own munis if you were in the 35+% bracket. in retirement you are basically able to choose your own tax rate so those probably wouldn't be a good choice.

[Tangler]

you're probably better off keeping all bonds in the IRA, especially while you are working. last i checked it only made sense to own munis if you were in the 35+% bracket. in retirement you are basically able to choose your own tax rate so those probably wouldn't be a good choice.

Good points. I don’t have a lot of in municipal bond fiunds, just a little. I know bonds are tax inefficient but i plan on using as cash-like entities for my cash bucket in taxable for SORR.
plan to fire in 1-5 years……unsure how long