Tweet
I have about 1.1 million in my employers retirement accounts and I'm in my mid 40s and my wife is in her early 40s. I have another 325k between roths/wifes 401k/taxable for 1.425mill total retirement savings thus far. I max out 403b/457. Wife contributes to 403b (works part time). we do backdoor roths and for the taxable we put in another 25k a year. With all that we're in the high teens for savings (I know WCI says 20 but we're close)
The 1.1 million is split between 3 accounts:
1. 403b, 2. nongovermental 457 (my employer is solvent, flexible withdrawal options, no forced distributions), 3. A defined contribution account (this is money my employer puts in for me. we get a fixed percentage of salary but no match).
Currently the money is about equal in all 3 accounts and I asset allocate the same way:
10% bonds, 20% international, 70% stocks (35% sp 500 / 35% extended market index).
This has worked for my and my money has grown over the last decade or so. I have a pretty good risk tolerance. In some of the recent ups and downs I've seen a >10% dip and recovery and didn't flinch.
My questions:
1. Is 10% in bonds too risky for our age?
2. When I started with this allocation (about 6 or 7 years ago when I got a little more knowledgable) I didn't know a lot about tilting so I did 50/50 for the stocks between sp500 and the rest of the market. I realize this is weighted in a way for more volatility and 80/20 is probably more representative of the total market. Is this split a bad idea or should I be more towards the sp?
3. Is there a reason to not allocate all the accounts with the same percentages?
The 1.1 million is split between 3 accounts:
1. 403b, 2. nongovermental 457 (my employer is solvent, flexible withdrawal options, no forced distributions), 3. A defined contribution account (this is money my employer puts in for me. we get a fixed percentage of salary but no match).
Currently the money is about equal in all 3 accounts and I asset allocate the same way:
10% bonds, 20% international, 70% stocks (35% sp 500 / 35% extended market index).
This has worked for my and my money has grown over the last decade or so. I have a pretty good risk tolerance. In some of the recent ups and downs I've seen a >10% dip and recovery and didn't flinch.
My questions:
1. Is 10% in bonds too risky for our age?
2. When I started with this allocation (about 6 or 7 years ago when I got a little more knowledgable) I didn't know a lot about tilting so I did 50/50 for the stocks between sp500 and the rest of the market. I realize this is weighted in a way for more volatility and 80/20 is probably more representative of the total market. Is this split a bad idea or should I be more towards the sp?
3. Is there a reason to not allocate all the accounts with the same percentages?
Comment