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Old 01-15-2013, 08:36 AM   #41
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Originally Posted by youbet View Post
Since you have a significant position in CD's, receive SS and own your house, I'd say you're NOT "all in stocks."

I have a significant exposure to equities in my RE portfolio too, I just don't call it 100% when it's not.

One of our board members states that he rents, is too young for SS, is not collecting a pension and his RE portfolio is 100% individual stocks. Now that's being "all in stocks."
I was just trying to answer the original question about portfolios:

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Originally Posted by LeavingOhio View Post
Just curious if any of you have either all or mostly stocks in your portfolios while you are either very close to retirement or in retirement.
My investment *portfolio* is all invested in stocks (vs. bonds/REITs/gold). I put "all in stocks" in quotes because I do recognize that I have other assets outside my investment portfolio - some cash and a house (again not really an investment I rely on to grow in value, just a place to live).

Also, I mentioned SS because (most) people in the US expect to get something from SS if they live long enough. But it'll be 20 years or so before I tap into that.

Whatever
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Old 01-15-2013, 10:12 AM   #42
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Originally Posted by ERhoosier View Post
+1

Too often asset allocation strategies ignore the concept of that 6-12mo cash fund for living expenses.
I don't think there is any law that says you have to include all of your investable/liquid assets in your asset allocation calculations. It all depends on what you are trying to achieve.

I cordon off my retirement portfolio from other liquid assets I own. Because I only do my annual withdrawal from my retirement portfolio, so that's the one I care about maintaining the AA and the resulting longevity/survival/volatility characteristics, etc.

My other liquid assets I can spend as I wish and I don't care about their longevity characteristics - whether it's "play money" or cash for living expenses, or whatever.

P.S. And I'm not claiming a 100% stocks allocation, nor would I ever chose to do so. I also have no social security, annuity or pension supplementing my annual income.
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Old 01-15-2013, 11:58 AM   #43
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Sure, it is your money and you get to name it. But to me it is like saying I have no pets, just this dog that barks if someone comes around.

Also, from the POV of discussing allocations, if everyone gives his own idiosyncratic definitions to things, we are kind of constructing a Tower of Babel.

Ha
I guess it is kind of hard paying for groceries with stock certificates...
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Old 01-15-2013, 12:40 PM   #44
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Originally Posted by LeavingOhio View Post
Just curious if any of you have either all or mostly stocks in your portfolios while you are either very close to retirement or in retirement......
I am ER and am technically "all" stocks as well in my investment accounts (I have about 1 year of expenses in an online savings account).

However, about 40% of my "stocks" are shares of bond mutual funds so in reality I'm ~ 56% equities, 40% fixed income and 4% cash.

I don't follow Ramsey but I think it is dangerous to be 100% equities in retirement unless your WR is really low - and it is idiotic to think that equities will generate 12% long term returns (but I hope that I am wrong).
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Old 01-16-2013, 08:46 AM   #45
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Originally Posted by pb4uski View Post
I am ER and am technically "all" stocks as well in my investment accounts (I have about 1 year of expenses in an online savings account).

However, about 40% of my "stocks" are shares of bond mutual funds so in reality I'm ~ 56% equities, 40% fixed income and 4% cash.

I don't follow Ramsey but I think it is dangerous to be 100% equities in retirement unless your WR is really low - and it is idiotic to think that equities will generate 12% long term returns (but I hope that I am wrong).
There for sure COULD be a 30-year period of time where equities bring 12% return...mutual funds since inception have brought close to that. But, I agree with you that to EXPECT it to happen is not good planning. I have gained about 11% annually since I started investing with mostly a buy and hold strategy, but going forward I base things on 7% and 8% growth (I have a spreadsheet that gives me what-ifs, and those two percentages are my defaults).

Assuming I have no debt including a paid for house, a year of expenses (or more) in a liquid account (maybe an MMA account) and also receiving Social Security, I might keep my investment money all in stocks, or just keep it about where it is now - 13%. I think the key though is to be 100% debt free and have at least a year of expenses saved in cash (so I guess technically that's not all stocks, but the investment pile would be).
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