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Originally Posted by FIREHAPPY
Hi. Retired in 2016 at 54, wife retiring next month at 53. Our overall portfolio is currently weighed 70% in low cost, stock index funds.
Deferred comp plan begins distribution in 2018 and will pay all living expenses next 5 years. DC is currently invested in S&P Index funds.
I'm wondering if I should move the deferred comp investments to a more conservative investment structure such as a short term bond fund to ensure stability. Shifting to a more conservative structure seems like a prudent move but i'm not a big fan of bond funds in a rising interest rate environment.
Would appreciate comments/feedback. Thanks
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So just a quick example of my situation. Started my deferred comp two years ago on a ten year payout. It has been in 100% equities until last month when I went 60/40. The result has been my taking out 1/10th and then 1/9th but my total portfolio has actually held pretty steady in total value. This year 1/8th in May and each year the payout increases due to the growth in the fund.
By putting 100% in a conservative you know what you're getting but you're losing in the opportunity to get raises each year it pays off.
Just my opinion.