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opinions on my planned AA
Old 03-19-2014, 06:00 AM   #1
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opinions on my planned AA

trying to position my portfolio for full retirement starting next year. What are your opinions?

safety reserve - 2 years
remainder -60 stock /40 bond 90% index funds
stock - 26% us large
11% us small/mid
12% intl stock
11% individual stocks (cap gains issues)

bond - 13% short term US
16% intermediate US
5% long US
6% international

Fire away !
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Old 03-19-2014, 06:57 AM   #2
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Looks fine to me. The key is to stick with it through market & sector ups & downs, ie don't chase the best performers.
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Old 03-19-2014, 07:00 AM   #3
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looks good to me!
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Old 03-19-2014, 07:11 AM   #4
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I'd have to check to confirm, but the AA and sub AA looks close to what Vanguard provided me recently in yearly "freebie" Financial Plan. (Me, late 50's, retired). So I'd say its OK. (Hope it is anyway , because the AA in your OP is close to my current AA/sub-AA).
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Old 03-19-2014, 07:23 AM   #5
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Well diversified, I'm assuming mostly index funds and you're managing them yourself. Curious if bond interest and stock dividends, along with SS and any retirement you may have will be sufficient to fund your retirement. If so, you're in fantastic shape as stock dividends usually increase over the years. But....if you have to sell part of this portfolio each year, how do you plan to do that? Good Luck........enjoy your retirement!
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Old 03-19-2014, 07:48 AM   #6
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I'd be surprised if you get any bad reviews, it's a textbook passive/lazy portfolio, like many here!

Are the bonds funds, individual bonds, other? LT bond funds aren't very popular with the outlook for interest rates.
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Target AA: 60% equity funds / 35% bond funds / 5% cash
Target WR: Approx 2.5% Approx 20% SI (secure income, SS only)
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Old 03-19-2014, 10:39 AM   #7
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No particular concerns, in fact it is quite similar to my AA. I don't have any pensions or SS yet, if I had those income streams on-line right now I might be more aggressive than 60/40.

I found it easier to include what you are calling your safety reserve (I assume the money you will live off and use for emergencies) as part of my fixed income allocation so my target is 60 stock/ 34 fixed income and 6 cash.

I have a slightly larger international stock allocation (30% of stocks).
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Old 03-19-2014, 10:49 AM   #8
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I also have a small REIT index fund allocation, about 4%. Overall, you seem to have a well balanced AA.
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Old 03-19-2014, 10:57 AM   #9
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Quote:
Originally Posted by Midpack View Post
I'd be surprised if you get any bad reviews, it's a textbook passive/lazy portfolio, like many here!

Are the bonds funds, individual bonds, other? LT bond funds aren't very popular with the outlook for interest rates.
+1

Didn't see anything on bond ratings (quality), which you may want to reveal to get forum comments.
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Old 03-19-2014, 11:04 AM   #10
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Good point. I actually have a specific portion of my allocation targeted to high yield bonds - in my case 20% of my domestic bonds allocation.
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Old 03-19-2014, 11:14 AM   #11
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The two differences between your AA and mine is I have a slice of what you have in bonds funds (9% pverall) in a REIT index fund, and I have 10% more in international funds (less in US equities).

I agree with the others who say your AA is very sound, and if it lines up with your risk tolerance you should be good to go.
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