Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Nearing Goal
Old 03-03-2010, 03:52 PM   #1
Full time employment: Posting here.
 
Join Date: Mar 2008
Posts: 704
Nearing Goal

For the 5th time (first 3 times I didn't know it), I'm nearing my retirement goal for my portfolio. Has anyone ever been tempted to take it all out of equities and invest only in bonds and bond funds, just to make sure it will be there at retirement? I don't think I'll do it, but I'm thinking about it.
__________________

__________________
akck 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 03-03-2010, 04:21 PM   #2
Administrator
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 38,949
No, but it does make sense to shift to a more conservative asset allocation as you near retirement. I did that and was happy to have done it.
__________________

__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities.

- - H. Melville, 1851
W2R is offline   Reply With Quote
Old 03-03-2010, 04:36 PM   #3
Recycles dryer sheets
 
Join Date: Oct 2008
Posts: 295
Yes, as she said..
I just put as much in a Bond Portfolio that a 4% Yld and a 7% apy would pay my bills and the rest went into Balanced Funds.
Combined ave of a 40/60 mix.

Since 2000? Both are running pretty close to neck and neck.. The Bond port ave 8% apy and the BalFunds ave 9.5% apy past 10 yrs..

IF LT Treasureis ever get upo to say 7-8% again? You can go that route and take the Qtrly payments out to pay our bills and Invest the left over into a Moderate risk Portfolio ..
__________________
Dennis is offline   Reply With Quote
Old 03-03-2010, 04:39 PM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
bbbamI's Avatar
 
Join Date: Dec 2006
Location: Dallas 'burb
Posts: 9,039
I've been tempted, but have not done it...yet. Right now, I'm around 32% stock and this seems appropriate in my situation. I have several years of living expenses in cash equivalents and this fact IMO, helps me stay diversified.
__________________
There's no need to complicate, our time is short..
bbbamI is offline   Reply With Quote
Old 03-03-2010, 04:49 PM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
freebird5825's Avatar
 
Join Date: Feb 2008
Location: East Nowhere, 43N Latitude, NY
Posts: 9,017
Disclaimer: My middle name is "Chicken Feathers".

Would I ever go to zero equities? Never gonna happen.

I changed my AA from 60/40 to 50/50 right after I FIREd in April 2007. I wanted to see how that "middle of the road" AA would fare over a 1 year period.
Add 365 days, then a few more months, and I found myself sitting on a
-25% unrealized overall portfolio loss at the end of 2008.
My personal risk limit was exceeded, in real time with real data.
In early January 2009, I reset my AA to 40/60 and intend to leave it right there. This is where I feel comfy.

You need to find your own personal risk comfort zone.
__________________
"All our dreams can come true, if we have the courage to pursue them." - Walt Disney
freebird5825 is offline   Reply With Quote
Old 03-03-2010, 05:40 PM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Moemg's Avatar
 
Join Date: Jan 2007
Location: Sarasota,fl.
Posts: 10,038
Quote:
Originally Posted by akck View Post
For the 5th time (first 3 times I didn't know it), I'm nearing my retirement goal for my portfolio. Has anyone ever been tempted to take it all out of equities and invest only in bonds and bond funds, just to make sure it will be there at retirement? I don't think I'll do it, but I'm thinking about it.

I have to honestly say . I have never been tempted to go all bonds . I have reduced my stock exposure to 65% but I have a stable pension and SS survivor benefits . Why would you go all anything ?
__________________
Moemg is offline   Reply With Quote
Old 03-03-2010, 06:35 PM   #7
Full time employment: Posting here.
 
Join Date: Mar 2008
Posts: 704
Quote:
Originally Posted by W2R View Post
No, but it does make sense to shift to a more conservative asset allocation as you near retirement. I did that and was happy to have done it.
I've started the shift from growth to income producing equity investments. I also started my fixed income ladder, for years 1 and 5 of retirement. I have 4 years to complete the ladder and hopefully rates will be up over that period.
__________________
akck is offline   Reply With Quote
Old 03-03-2010, 06:47 PM   #8
Full time employment: Posting here.
 
Join Date: Mar 2008
Posts: 704
Quote:
Originally Posted by Moemg View Post
I have to honestly say . I have never been tempted to go all bonds . I have reduced my stock exposure to 65% but I have a stable pension and SS survivor benefits . Why would you go all anything ?
Just because my portfolio has hit it's current target 5 times, only to go below it. Three of those times, my target was higher at the time, so it's the feeling of having enough to retire only to see it disappear. As I approach it for the 6th time, I have a little thought to exit equities to guarantee the portfolio will be large enough. Of course, it would mean re-entering equities in retirement to get an appropriate return.
__________________
akck is offline   Reply With Quote
Old 03-03-2010, 06:52 PM   #9
Thinks s/he gets paid by the post
Rambler's Avatar
 
Join Date: Jul 2007
Posts: 2,250
I'm still accumulating and targeting around 60/40 to 55/45, with about 2 - 3 years barebones cash on top of that. My goal is to set it up well enough that the bond side of the port takes care of all of my budgeted expenses, and for the first few years anyway, the stock dividends sufficient enough to rebalance and add enough bond interest to cover inflation. Over time, I will sell appreciated equities to rebalance into bonds...hopefully I won't ever have to sell any bonds to rebalance into equities. Fingers and toes are crossed on that one...

R
__________________
Find Joy in the Journey...
Rambler is offline   Reply With Quote
Old 03-03-2010, 06:57 PM   #10
Full time employment: Posting here.
 
Join Date: Mar 2008
Posts: 704
Quote:
Originally Posted by freebird5825 View Post
Disclaimer: My middle name is "Chicken Feathers".

Would I ever go to all zero equities? Never gonna happen.

I changed my AA from 60/40 to 50/50 right after I FIREd in April 2007. I wanted to see how that "middle of the road" AA would fare over a 1 year period.
Add 365 days, then a few more months, and I found myself sitting on a
-25% unrealized overall portfolio loss at the end of 2008.
My personal risk limit was exceeded, in real time with real data.
In early January 2009, I reset my AA to 40/60 and intend to leave it right there. This is where I feel comfy.

You need to find your own personal risk comfort zone.
I agree with you and will never go all fixed income simply because I may be wrong on my plan and may need more. Also, I'd like to leave an inheritance for the kids, so they'll have a start on their retirement as they pay for mine. One thing that has changed is that I no longer need to be in as risky investments as I used to, so I'm moving from small cap/growth to income producing and will probably move everything into funds as I no longer feel the need to directly manage investments in retirement.

I'm sure I'll find my comfort level too.
__________________
akck is offline   Reply With Quote
Old 03-03-2010, 07:18 PM   #11
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
bbbamI's Avatar
 
Join Date: Dec 2006
Location: Dallas 'burb
Posts: 9,039
Quote:
Originally Posted by freebird5825 View Post
Would I ever go to all zero equities? Never gonna happen.
I said never once...later I vowed never to say never again....
__________________

__________________
There's no need to complicate, our time is short..
bbbamI 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
Could we be nearing the end of the R/E crisis? fmhealth FIRE and Money 29 04-22-2008 10:23 PM
Money goal or time goal? utrecht FIRE and Money 28 01-10-2008 08:32 PM
Nearing the FIRE... ajs56 Hi, I am... 9 08-10-2007 08:23 PM

 

 
All times are GMT -6. The time now is 05:09 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.