packrat44
Thinks s/he gets paid by the post
I have 2 financial advisors that have been breathing down my neck since May 07. Just as they were ready to sink their fangs into me and suck out my blood (money), I temporarily gave them the slip and found Early Retirement Forum. I have been keeping them at bay the last 2 months while reading the posts on this site along with Bogle, Berstein, Swedroe, and Armstrong.
I have developed an asset allocation that I believe with work for me and I would appreciate your constructive critique. Will it work? What are the flaws? What should be done differently?
Background: DW and I retired 1 year ago; military and federal civilian pensions cover our basic expenses; inexpensive health insurance through Tricare Prime; I will draw SS in 4 to 7 years; DW will draw in 8 years; no mortgage; no debt; do all our own maintenance - residential and automotive; $2M portfolio. Presently in 6 American and 1 Fidelity equity funds; 11 individual stocks; 1 bond fund; and a MM fund. Looking at 4% annual withdrawal from portfolio (from equities in good times; from bonds/CDs in bad times). "Wants" are relatively small so we can radically reduce withdrawals during bad times.
Proposed Asset Allocation
Equities -----70%
Bonds/CDs--20%
MM ----------10%
Equities
---US
------Large Cap -----40%
------Small Cap----- 13%
---International
------EAFE ----------15%
------Emerging Mkt-- 2%
Bonds/CDs ----------20% (laddered at 4%/yr for 5 years)
MM ------------------10%
I have developed an asset allocation that I believe with work for me and I would appreciate your constructive critique. Will it work? What are the flaws? What should be done differently?
Background: DW and I retired 1 year ago; military and federal civilian pensions cover our basic expenses; inexpensive health insurance through Tricare Prime; I will draw SS in 4 to 7 years; DW will draw in 8 years; no mortgage; no debt; do all our own maintenance - residential and automotive; $2M portfolio. Presently in 6 American and 1 Fidelity equity funds; 11 individual stocks; 1 bond fund; and a MM fund. Looking at 4% annual withdrawal from portfolio (from equities in good times; from bonds/CDs in bad times). "Wants" are relatively small so we can radically reduce withdrawals during bad times.
Proposed Asset Allocation
Equities -----70%
Bonds/CDs--20%
MM ----------10%
Equities
---US
------Large Cap -----40%
------Small Cap----- 13%
---International
------EAFE ----------15%
------Emerging Mkt-- 2%
Bonds/CDs ----------20% (laddered at 4%/yr for 5 years)
MM ------------------10%