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Re: "In Retirement" Portfolio's
Old 09-04-2005, 09:54 AM   #21
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Re: "In Retirement" Portfolio's

Plan to retire in 2.5 years

about $460,000 in equities (but intend to put in roughly $110k more in the next 2.5 years due to "catch-up" provisions), currently split

25% Canadian large cap and small cap mutual funds
27% diversified international equities
18% diversified US equities (basket of sector funds incldg gold & energy)
7% US small cap mutual fund
18% cash and short-term debt instruments
5% TIPS bond mutual fund

Have a pension that will provide apporx. $50,000 per year. Wife has pension starting 2011 that will be approximately $12,000 per year. I have the option of taking the $50,000 pension as $59,000 per year until I turn 66, then having it reduce to $38,000 per year starting at 66. The logic of this is to eliminate some of the social security "windfall elimination provision"). My calculations indicate I would be somewhere around 78 years old before the curves cross.

I think the logical thing to do is take the accelerated payout and give the investments another 13 or 14 years to remain largely untouched. Fortunately, both pensions come with medical coverage, and there is provincial medical coverage available in BC.

Since we will be relying heavily on the pensions for several years, I feel reasonably comfortable with a large equity exposure. However, since we are retiring in Canada, I have large positions outside the US to mitigate the Bush Fiscal Irresponsibility tax (tailspinning US dollar).
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Re: "In Retirement" Portfolio's
Old 09-04-2005, 05:19 PM   #22
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Re: "In Retirement" Portfolio's

Quote:
how many of you are still holding REIT's?
11% REITs .. thinking about reducing its exposure to 6%.
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Re: "In Retirement" Portfolio's
Old 09-04-2005, 05:25 PM   #23
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Re: "In Retirement" Portfolio's

Still accumulating, but...

RWR - 7.1%, yield = 5.56%
IGR - 5.0%, yield = 8.23%

Both in self-directed 401k; plan for now is stay the course.
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Re: "In Retirement" Portfolio's
Old 09-04-2005, 05:26 PM   #24
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Re: "In Retirement" Portfolio's

Just for the hell of it, here
is my folks (mid to late 80s):

50% *residence
50% *cash/CDs

No stocks, bonds, etc. *These are as foreign to them as a Martian
walking into their kitchen.

JG
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Re: "In Retirement" Portfolio's
Old 09-04-2005, 05:34 PM   #25
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Re: "In Retirement" Portfolio's

5% REITS and holding:

ICF, VGSIX, AVB, IGR
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Re: "In Retirement" Portfolio's
Old 09-04-2005, 06:08 PM   #26
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Re: "In Retirement" Portfolio's

Quote:
Originally Posted by modhatter
I am curious about those individuals currently "in retirement" or at least within two years of retirement - what kind of asset allocation you now have. (% of stocks, bonds, real estate, CD's, Reits, etc.)
I'm retired 4 years. Wife still works.
Ages: early 50s (me) / early 40s (wife)

My pension (non-COLA) is about $33K/year.
Wife makes $48K/year and will get no pension.

No debts. Portfolio (excluding house, which is paid off):

40% CDs
17% Bond funds
16% Cash (money market, etc)
14% Stock mutual funds
9% US Savings Bonds (I and EE)
3% Misc stock and bond mutual funds
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Re: "In Retirement" Portfolio's
Old 09-05-2005, 08:10 PM   #27
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Re: "In Retirement" Portfolio's

Mod

It has been 2 and 1/2 years since retirement, and with two cola'ed pensions covering more than our LBYM lifestyle, we have* been relatively agressive with our portfolio.*

REITs had been good for us in the past two years; until mid-August we had 5% in REITs and then dropped it to 1% in favor of more Global Equity exposure.

Current Portfolio
* 20% Cash/SBs
* 10% High Yield
* 20% International Equity
* 50% US Equity

Lately, I have been reconsidering dividend bearing equities because virtually all of our income is fully taxed.* I still haven't decided what to do but am tending toward funds that grow and spawn long-term capital gains rather than conventional dividends.* We are 62 & 64 so we have some time until the dreaded MRD period but it doesn't seem very fruitful to convert part of the tax-deferred 35% of our total portfolio into a Roth when we would pay such a high rate to do so.*

I'd like to have a further discussion on this topic.

JohnP
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Re: "In Retirement" Portfolio's
Old 09-05-2005, 10:44 PM   #28
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Re: "In Retirement" Portfolio's

Quote:
Originally Posted by JohnP
current Portfolio
20% Cash/SBs
10% High Yield
20% International Equity
50% US Equity

Lately, I have been reconsidering dividend bearing equities because virtually all of our income is fully taxed.
How about shifting some of the cash and high yields to IBonds that are tax deferred?
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Re: "In Retirement" Portfolio's
Old 09-06-2005, 08:55 AM   #29
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Re: "In Retirement" Portfolio's

Spanky - Thanks for the reply*

I realize that not everyone has my "problem"; as I see it, I don't need deferral of income but a lower tax rate on the income would be helpful.*

Right now, about 15% of the portfolio is in fed and state tax-free MM @ Vanguard paying a current 2.43%/yr based on this month's payout - not good but not bad either given the state of the values of the market.* The remainder of the portfolio has been up surprisingly (to me) this year - I am currently looking forward to the end of the summer doldrums and a focus to the market, if that is possible.* * *

In the meantime I am watching and learning and trying to thread my way through the minefields of life.* *8)

JohnP
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Re: "In Retirement" Portfolio's
Old 09-06-2005, 11:59 AM   #30
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Re: "In Retirement" Portfolio's

Will retire next month with 3% withdrawl on:

71% rental real estate
14% home equity (no plan to touch this for 40+ years)
15% stocks

Also have a small pension and SS in 24 years.
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Re: "In Retirement" Portfolio's
Old 09-06-2005, 01:19 PM   #31
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Re: "In Retirement" Portfolio's

Hey Astro,

What do you think of the new Cohen & Steers Global REIT offering, instead of the ING one? (I know ING Clarion has been out longer, so possibly you bought a while ago..)

If you were buying today with nothing in Reit Int'l., where do you think you'd stand?

Thanks,
Petey

Quote:
Originally Posted by astromeria
5% REITS and holding:

ICF, VGSIX, AVB, IGR
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Re: "In Retirement" Portfolio's
Old 09-06-2005, 02:26 PM   #32
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Re: "In Retirement" Portfolio's

Peetey -

From what I have read (via The Economist) the international real estate scene is even more out of control than the US. Very inflated prices worldwide so I don't know if it makes it attractive at this particular point. If you are not "timing" then I would take the global/intl Cohen/Steers over ING. Otherwise I would stay US or even trim REIT exposure.
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Re: "In Retirement" Portfolio's
Old 09-06-2005, 10:33 PM   #33
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Re: "In Retirement" Portfolio's

My IGR is in a taxable account (I've had it since it opened over a year ago)--and my assset allocation calls for 5% REITs and I'm right on the money (of course, I devised my AA myself and have been known to tweak it* :* But I'll look into the Cohen and Steers fund--thanks for the tip.

I've been studying the current state of my investments. I think I'm overweight in Foreign Developed Markets and underweight in Emerging (I'm at 2:1 and want to move to 1:1 at least). Having so many differnt accounts and 65% of our port in taxable accounts is a problem, though. (I know--plenty of people would love to have this problem ) I'm thinking of selling some Developed Market funds and buying ILF and more ADRE.
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Re: "In Retirement" Portfolio's
Old 09-08-2005, 04:57 AM   #34
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Re: "In Retirement" Portfolio's

Hi wild,

Actually that is not correct.

Conversion to REIT status has pushed up int'l. that was heavily discounted previously. However that change is not yet over. Many companies are still below NAV in a number of regions. There are also other countries still to convert.

When you compare this to US REITs which when I last looked were around 30% overpriced according to M* and over 10% according to other analysts. So more attractive than the overpriced US RE market at this time IMHO.

Petey

Quote:
Originally Posted by wildcat
Peetey -

From what I have read (via The Economist) the international real estate scene is even more out of control than the US.* Very inflated prices worldwide so I don't know if it makes it attractive at this particular point.* If you are not "timing" then I would take the global/intl Cohen/Steers over ING.* Otherwise I would stay US or even trim REIT exposure.
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Re: "In Retirement" Portfolio's
Old 09-09-2005, 05:03 AM   #35
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Re: "In Retirement" Portfolio's

The question is whether any of the global REITs(IGR/RWF) out there will be worth the 5 times higher e/r while still holding 50-60% US REITs.... I do not have access to the Fidelity fund unfortunately. Cheers!

Quote:
Originally Posted by peteyperson
Hi wild,

Actually that is not correct.

Conversion to REIT status has pushed up int'l. that was heavily discounted previously. However that change is not yet over. Many companies are still below NAV in a number of regions. There are also other countries still to convert.

When you compare this to US REITs which when I last looked were around 30% overpriced according to M* and over 10% according to other analysts. So more attractive than the overpriced US RE market at this time IMHO.

Petey
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Re: "In Retirement" Portfolio's
Old 09-09-2005, 05:37 AM   #36
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Re: "In Retirement" Portfolio's

Quote:
Originally Posted by ben
The question is whether any of the global REITs(IGR/RWF) out there will be worth the 5 times higher e/r while still holding 50-60% US REITs.... I do not have access to the Fidelity fund unfortunately. Cheers!
Yes, I agree with this.

I cannot understand why no one has brought out an int'l ex. USA RE index fund yet. There is an Alpine active fund, but nothing else. I'm hoping the forthcoming iShares int'l RE option might do this because they already have several US options. Would be much more efficient. I like to separate out US and UK which I can either do better via individually selected holdings or via index funds in the US.

I think with a little patience we'll see an int'l RE index option in due course. It took a while but there is now a EAFE Value Index ETF. Int'l ScV and Int'l RE are gaps in the market at present.

Petey
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Re: "In Retirement" Portfolio's
Old 09-09-2005, 06:27 AM   #37
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Re: "In Retirement" Portfolio's

And then a good commodities futures ETF..... and a gold stock ETF!

For us non-resident aliens it is nice to see the trend towards ETFs covering most asset classes, as most can not buy US based mutual funds (I can currently through my broker, but who knows how long that will last..).

Cheers!
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Re: "In Retirement" Portfolio's
Old 09-10-2005, 12:56 AM   #38
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Re: "In Retirement" Portfolio's

Have any of you done the short term options trading for income to suplement the traditional equities and bonds. I'm a couple of years away yet, but I've been doing some writing of covered calls and puts, and been able to grow at about 20+% when being aggresive, and 12-13% when being conservative. Works great so far in IRA, but the taxable account really sucks having to pay taxes each year on the gains now. Just curious if there are any other alternative styles being pursued. I do plan to use this as a income stream when I do retire, and it could provide 50% of needs till SS kicks in.
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Re: "In Retirement" Portfolio's
Old 09-10-2005, 07:02 AM   #39
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Re: "In Retirement" Portfolio's

I have done short term options trading for income. I have had several covered calls expire worthless, so I can write that my return is infinity%. That doesn't tell the true story though. There are many problems with selling covered calls and writing cash-backed puts. I usually work with blue-chip stocks like HD, GE, WMT, TGT, CVX, LOW when selling covered calls. I am curious which stocks you work with. My goal is to learn while not losing money. So far I am successful, but I can't make my mortgage payment this way.
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Re: "In Retirement" Portfolio's
Old 09-12-2005, 02:01 AM   #40
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Re: "In Retirement" Portfolio's

As the caveat says "your results may be different" - so far, and I emphasize that I have only been doing it for less then a year, I have averaged about 22% on total funds of 124k. Not all funds are committed at one time, which works out to a pretty lucky average so far. The method I use is the Kim Snider plan, and although she emphasizes low risk conservative covered calls and minimal naked puts, her expectation is pegged at 13%. My itchy fingers are pushing the envelope, and indeed, most of the blue chips you list have so little volatility, that you can't make much money on them. She has some parameters that look at higher volatility, yet "safe" wihin the current market time frame of 1 - 12 months.
At this point, it seems too good to be true, so I'm proceeding cautiously before putting a large chunk of cash into it. My friends that got me into it, have had similar experiences, although they are a bit unhappy right now, as they are "only" getting about 13%.
Not for the majority, but if you accept the risk, there appear to be some rewards as well.
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