Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 11-14-2016, 05:21 AM   #21
Dryer sheet aficionado
 
Join Date: Sep 2009
Posts: 30
Didn't see this brought up, so I thought I would raise it. Given the ages of the OP and spouse, they can very reasonably expect to live another 25-30 years. So is 60/40 really appropriate? Yes, one has to stay w/in one's risk tolerance, and surely the looming idea of having to draw on the funds in about 18 months is a concern.

Would it perhaps not be better to move a year or so of living expenses to cash, and then go 90/10? So as to (at least partially) assuage the fear of sequence of returns risk? Or, if the OP could stomach staying employed a little longer, that could also play a role.

Thoughts

(PS - if 60/40 is what it takes to sleep well at night, then certainly that is the right answer for OP. But in the general case.... ?)
__________________

__________________
sakowitzm is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 11-14-2016, 06:54 AM   #22
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
NW-Bound's Avatar
 
Join Date: Jul 2008
Posts: 19,193
90/10 after 1 year of cash? History has shown declining periods of stocks as long as 10 years. How does one know if it will not repeat?
__________________

__________________
"Old age is the most unexpected of all things that can happen to a man" -- Leon Trotsky
NW-Bound is offline   Reply With Quote
Old 11-15-2016, 11:30 AM   #23
Recycles dryer sheets
 
Join Date: Aug 2013
Posts: 136
Back again. Thanks for the comments.
The 10 debit transactions needed at our CU to qualify for 3.5% is not an issue. We both are working and that is a couple of lunches a week. We put the low dollar items here in order to maximize miles on our credit cards. And our paychecks are ACH. So very easy to get 3.5% on 1st $25k in our checking account.
Re: AA. It was my understanding that the closer to retirement - the more conservative our AA should be. We had been fairly aggressive to date and had only been at 70/30 for a couple of years (prev 80/20).
Of the $ 820k (40% bond/fixed) is $327k in the 3.5% fixed fund in my 403b. In addition, we have $156k cash. Our budgeted spend in retirement is $120k a year, but can easily scale that back to $90k. So in down market, the plan is $100k spend, Pension $45K, DH SS $20K, so $35k needed from investments. We can pull our minimum needs of $35k for 25 years from the fixed/bond portion if need be.
That being said, I don't believe I am market timing. The new AA is more conservative due to our age and retirement date of 17 months.
__________________

__________________
whatnot is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
35 yr old wake up call Bert Cooper Hi, I am... 27 01-14-2014 11:34 AM
A wake-up call for ER...34 in California phase2 Hi, I am... 9 02-15-2013 11:40 AM
Sometimes you just need a wake up call Nuiloa Other topics 9 08-15-2011 06:19 PM
Wake up call - I've got 10 years to go! boilerman Hi, I am... 18 10-11-2007 07:33 PM
See @ Last, See @ Last, Thank God I Can See @ Last Beachbumz Other topics 24 02-18-2005 07:16 PM

 

 
All times are GMT -6. The time now is 01:11 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.