Originally Posted by keegs
I'm going to roll over my 401k into an IRA and at the same time adjust my AA from an 80 - 20 to a 50 - 50 mix. My AA has been aggressive throughout my accumulation years and I'm wondering how will this more conservative mix meet my expectation and what kind of an adjustment am I in for.
I adjusted my AA three years before I retired to 50/40/10 and have stayed the course for the last two years since I retired with just annual rebalancing. The historical returns of this AA is more than enough to support my WR in retirement so there no need to take on more risk.
If the stock market drops by 50% as it did during the great recession of 2007-2009 I will lose 25% of my portfolio and I'm able to live with it.
You have to decide on how much of a loss will keep you up at night.