Re: Asset Allocation Question
I don't subscribe to such an age formulaic rule.* I prefer to keep 10 years of future income needs in fixed income securities.* Of course, this presumes you are able to estimate future income needs.* I use Quicken to track all our accounts, checking, credit cards, portfolio, and so forth, and that gives us a pretty good idea of our income/expenses by category.
At 70 and after 14 years of retirement, our asset allocation is 55% equities (Vanguard total stock market and total international funds), 10% REIT fund, 35% fixed income securities (Vanguard intermediate-, short-term, and TIPS funds).* Given my family's proclivity for living to 100 and beyonds, I plan for at least another 30 years.* I worry more about inflation than temporary variation in asset value.