Retired last year at 55. Have been investing for ~30 yrs. Now, I generally buy and hold assets but look for significant opportunities to optimize returns a bit. Our target asset allocation is a range:
Equities = 65%min, 90% max (focusing on dividend paying assets)
Fixed = remainder
When market reaches higher levels, will tend to sell off some equities. When market appears low, will tend to buy some dividend paying equities. We recognize that this is an aggressive strategy. We are comfortable with it because (a) we have extra assets (so can hold equities during downturns and don't need to sell at low points) and (b) have leeway to cut expenses if needed (so can take a hit in the portfolio until market comes back).
Currently we are at 78% equities. We were recently at 86% before selling some stock that had reached a reasonably high level. If market stays relatively high valued, we will likely make another step change (equity sale) early next year when I'm willing to take the tax hit. If market takes a big drop, will sit on the current equities, take the dividends and fill any remaining money needs from the fixed assets until the market rebounds.
Work Pension: Took my work pension as a lump sum so it's now just included in my asset allocation.
Social Security (pension) - My wife and I plan to take SS at 62.
I like
Boggleheads wiki on AA. Table 2 provides an idea of how much market volatility you should probably plan for given an AA. For example, a 65% equities portfolio should consider a possible loss of 25-30%. 90% equities up to 40%. So your level of risk tolerance is important.
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