Age vs Equity/Fixed Income Split

[RetireAge50]

47=76/24

 

[Bigal50]

58 = 40/60 but I don't plan on going below 40% equities in future years.

+1

 

[ETFs_Rule]

The rule of thumb about keeping your age as a percentage of your fixed income is some what dated in my opinion. I am 62 (retired, DW is 59))and have a 65 equities/35 fixed income split. The majority of my equities are index funds, TSM and S&P. Just wondering what others are doing.

For the sake of brevity if you would like to participate just put age and equities/fixed income split as something like this.

62=65/35

I've also heard age + 10 for equities.
So 72% equities + 28% bonds.
Also depends on WHO you are investing for... you or your heirs.

 

[jollystomper]

55, 50/50 (50% equities, 30% bonds, 20% cash).

 

[eta2020]

48, 90% equities 5% REITs 5% cash

I plan to grow cash to 10%-20% before RE in 2020

 

[ragabnh]

57 year old, 67% Equities, 33% bonds, will reitire by August next year.

 

[martyb]

Age nearly 56. As of a couple days ago, my TSP is 67/33. Just before that, I was 100% equities for much of the past year and a half.

 

[foxfirev5]

I am surprised at the number of people at or near ER with 70+% in equities. If I had a decent pension that would not be an issue, but not with 100% of my ER income at stake.

 

[Brett_Cameron]

Age 58 62% stocks, 38% Bonds, cash and other.

 

[REWahoo]

Age 66.96: 46/54

 

[Dawg52]

Age 59. 30/70

 

[diehard1997]

Age 38
70/22/8
Equities/Bonds/Cash

 

[HFWR]

59: 48.7/34.71/9.94/6.65

Stock funds/bond fund/REIT fund/cash

 

[RockyMtn]

Retired, 55: 62/38

 

[rescueme]

Different ages, different goals:

During accumulation years (1982-2006), 90-95% equity; remainder in bonds/cash.
During early retirement (at age 59, in 2007), 60/40 split; 60% equities.
Today's goal (both age 65/retired), 50/50 split; 50% equites.

While we certainly could have higher equity holdings in today's market, we don't feel we need to actively look for additional holdings. Just the recent increase in equity value has resulted in current holdings of 51%. It would have been much higher except that we converted a good bit of gains to cash (two big home improvement projects this year) and added to our cash reserves in planning for the next possible downturn.

A bit conserative? Sure; but we can afford to be at our age (we still remain quite a bit above our "number", even after being retired for a good period of time).

 

[Danmar]

63 retired. 100% dividend paying equities in portfolio. When you value our DB pension it is more like 55/45. This ratio will gradually skew more to equities as our pension decreases in value as we age and the equities increase (hopefully) over time. Divs growing by about 10% per year over last 3 years and when combined with the pension should keep us ahead of inflation.

 

[Willers]

50=61/39

I expect to stay between 60/40 and 65/35 throughout RE.

 

[photoguy]

41@73/27

I'm thinking I may want the allocation to go higher to equities after ER.

 

[jazz4cash]

Not retired:
age/equities/fixed
55.5/72/28

 

[Huston55]

Age 66.96: 46/54

HAPPY almost BDAY!

 

[Huston55]

58.07yrs. 60/40 now; planning 60/25/15 at retirement.

 

[freddyw]

retired 58; 60/20/20 (stocks/bonds/cash)

 

[enjoyinglife102]

Age 55 retired for five years.
30/70 stocks/bonds

Don't know if anyone has seen this study before but it's focus is minimizing retirement downside risk. That's been my approach; what's the least amount of stocks I can hold to support my spending needs. Works for me providing a great life without as much worry of big losses.

https://content.putnam.com/literature/pdf/PI001.pdf

 

[ETFs_Rule]

48 yrs - 87% equities / 10% gold / 3% cash at the moment. Never blinked an eye throughout the 2008 crash and recovery.

 

[pb4uski]

....For the sake of brevity if you would like to participate just put age and equities/fixed income split as something like this.

62=65/35

retired at age 56

58=60/40 (excludes DB pension and SS values)

So I guess I'm inverse to the age=bonds notion, but I have been an equity investor for over 35 years and am very comfortable with equity risks. I didn't have any bonds at all (other than some funds held for short term liquidity) until my 50s IIRC. I don't see changing it at all at this point.