Is anyone 50+ and still in full aggressive growth mode with IRA?

[Audie Murphy]

I know that many make their AA their years of age in bond funds and the remaining percentage in stock funds. How many ignore this and stick with and aggressive growth strategy? Maybe there are even some 60+ still doing this. Just curious. Thank you.

 

[NW-Bound]

I am 60+, and have been running stock AA of 70% to 80%. I know some other posters here doing the same.

I just cut back to 62% recently, but that's a tactical AA. If and when the market pulls back, I may increase equity AA again. I like the excitement. It makes life less boring.

 

[CyclingInvestor]

I am 61, retired 13 years, and have maintained 100% allocation to individual stocks since 1993, all in my IRA. I own no aggressive growth stocks, however, just more conservative dividend-growth stocks.

 

[skipro33]

I'm 62 and fully into stock index with my IRA. However, I have a pension that covers all my expenses, plus SS now for 7 months that is my 'mad' money. So I don't really need the IRA to live on. I suppose once it gets to RMD, I'll have to take some out, but until then, it grows. It's purpose is to fund our long term health care or the good retirement home.
I also have a fully paid home worth $800,000 or so. I imagine in 10 years I'll want to downsize because it's on acreage and takes quite a bit to keep the place up.

 

[Kwirk]

I'm 69 and ~80% stock index funds. I don't expect to ever need the money. Government pensions and SS cover our expenses with plenty to spare.

 

[Liam]

Balance is Key

I am 50+ full aggressive growth with balance of asset classes within real estate. To me real estate is secure, predictable and I am in control with a great service provider. I have sworn off stocks, bonds, metals, annuities,etc...

 

[Vacation4us]

I am soon to be 53. Still 80/20 stock funds in 401k. Most with Vanguard, now slowly building same percent with Fidelity due to job change.

 

[FlaGator]

59, 4+ years without a paycheck. 70/30 now, was 60/40 2 years ago

 

[Winemaker]

I'm 65/20/15.

 

[Moemg]

I am 72 65% stock 25% bond .

 

[Audie Murphy]

I love it. This is my plan and I am enthusiastic by others doing it.

 

[Major Tom]

I'm 55 and have 67% in equities. I suppose that is a little aggressive.

 

[RobbieB]

My IRA is 100% equities.

 

[SecondCor521]

I am 51 and my IRAs and taxable account are at 93% equities with a lazy intent to get up to 97% equities or so.

My Dad is 83 and he is at 73% equities.

 

[SnowBound]

52 and 100% in equities, less cash in HSA.

Was 60% & 40% in bonds I think in 2012? Got burned when Bill Gross bet against the Fed. Been mostly 100% since then.

 

[Senator]

59 and my stocks are 95%+ S&P, and S&P growth.

I have about the same amount in real estate.

 

[Scrapr]

When I was 50 (13 years ago) I was 100% stocks. IRA & the larger after tax portion. IIRC IRA was about 20% of the nest egg. If you do the math that was 2006. And we all know what happened next. It wasn't pretty. We had got through the 2001 recession & I thought I was ok with 100% AA. Yeah right. I waited for the recovery then rebalanced to 60-40

I sleep much better now

 

[NW-Bound]

I'm 55 and have 67% in equities. I suppose that is a little aggressive.

Not as aggressive as the geezers posting here.

I know some people here holding no stocks and being 100% in bond and cash. They just have not responded yet.

I love it. This is my plan and I am enthusiastic by others doing it.

As I mentioned earlier, I am cutting back from 70-80 to 62% now. The chance for the stock market going gangbusters in the years ahead is not that good.

But, that's my view and I do try to squeeze a few additional percent of return from the stocks I hold using options, and not too many people like or want to do that.

In any case, one must have a strong stomach to handle the volatility of a high-equity portfolio.

 

[ckelly78z]

My IRA is 100% equities.

My 401K is 100% equities at 54 years old....it's hard to give up the 25% YTD returns so far this year.

 

[SecondCor521]

I am 51 and my IRAs and taxable account are at 93% equities with a lazy intent to get up to 97% equities or so.

My Dad is 83 and he is at 73% equities.

I forgot to explain why. NW-Bound's comments about what the market might do in the near future leads me to comment on my reasoning.

I do not invest based on expectations about the near term future of the market.

I first start with my age and from that and my general level of health try to determine my remaining life expectancy. Currently I assess this to be about 40 years.

I then look at the maximum amount I can spend with 95% historical success given my portfolio size. I then use that spending level and my portfolio value and use the Investigate option to look at the relative success rate across various stock/bond AAs. I pick the highest level of stocks that is consistent with the maximum historical success rate across stock/bond allocations. Typically this is 90% stocks.

I then take that percentage WR and my current spending and that 90% stock AA and reverse calculate how much of my stash is actually going to be spent on me. The excess will be inherited by my kids. Since they will be inheriting that portion several decades from now, hopefully, I keep that excess at 100% stocks.

Since my WR is currently 0.85%, the math works out that I'll only spend a small portion of my FIRE stash (invested at 90% stocks) and the larger portion will be inherited (invested at 100% stocks). The weighted average is about 98%.

I'm lazy about it because (a) there really shouldn't be much difference between 93% stocks and 98% stocks, (b) it'll give me something to do and feel good about over the next several pullbacks (I rebalanced on 12/24/18), and (c) if I spend more, and I'm intending to try to spend more, then that increases the amount of my portfolio that is needed for me, and thus lowers the target overall stock AA.

If I can make it any more complicated and provide any more explanations that nobody probably cares about, I'll be sure to let everyone know.

 

[NW-Bound]

My 401K is 100% equities at 54 years old....it's hard to give up the 25% YTD returns so far this year.

I also like the YTD return so far. What I did not like was when the S&P tumbled recently from 2931 on 9/20/2018 to 2351 on 12/24/2018 or a drop of 20%. Santa Claus gave us lumps of hot burning coal last Christmas.

... Since my WR is currently 0.85% ...

It is impressive that your WR is so low. It is under even the meager dividend yield of the S&P. You are safe no matter what you do.

I figure I would be safe too no matter what I do because I do not expect to live even another 30 years, and I still have SS to draw on. However, being a self-professed market timer, I always like to have something outside of equities in order to have something to rebalance with. I like to get higher returns because it is a challenge.

The above said, the truth is that, at the market bottom, I never could overweigh stocks as much as I said beforehand that I would. It's tougher said than done. But running stock AA as high 70 to 80% is not too chicken either, and I am OK with my performance so far.

 

[GoBears]

My father at age 90 (later this month) is a firm believer in and adheres to a 60/40 allocation. Of course, he has a pension that provides more than his annual leaving expenses. So, he bought himself a Tesla last year. I, on the other hand, have no pension....

 

[NW-Bound]

If you are in the mid 70s or older and still have a decent portfolio that you are not likely to exhaust and are thinking of passing on to your heirs, there's no reason to cut back on stock AA.

 

[atmsmshr]

Was essentially 100% equities in 401k for 32 years with a steady job. Mostly S&P index and NextEra, plus a lucky stake dabbling with international. Rode out the up and downs of dot com bust and great recession while working.

Last year at 58, began cutback to equity and transferring to a MM account becoming much more conservative as retirement approached and having from our perspective - 'won the game.' No worries at all last Christmas. Swung to Treasuries from MM this past spring when Fed stopped raising interest rates.

Officially retired now. Plan to minimize Sequence of Risk Returns is to have a rising equity glide path. Our goal is not to maximize the grubstake, but to have a stable income. I would rather have a controlled drawdown than a 40% drop in assets. Pension and SS will cover the essentials.

11% return in the last 12 months according to FIDO - attributable to NextEra and Treasuries.

YMMV

 

[mrfeh]

53 here and semi-retired.

AA is 60/40. Plan to keep it there forever.